Legal Question in Bankruptcy in Illinois

House Trust In Illinois - Bankruptcy

I and my two sisters and brother were left a house by our mother. I live in the house alone.

If I file banruptcy in Illinois, can the house be sold to pay the creditors?

I have 37,000 in debt.

The house is paid off and is worth appx 100,000


Asked on 7/27/11, 12:28 pm

2 Answer from Attorneys
Robert D. Rotman Rotman & Elovitz, Ltd.

The quick answer is maybe... Your share is is $33,000. In a chapter 7, that share would belong to the bankruptcy estate for distribution to your creditors. You have a homestead exemption, you can protect $15,000 of your share. The good news is that the selling cost may make this transaction unfeasable for the trustee to sell. In that instance you will retain the house. If the trustee insists on selling the house, you can make the trustee an offer to "buy back" your share, generlly for far less than the $18,000.00 that would belong to the estate. There are many other factors to consider including but not limited to passing the "means" test. Please call for further information.

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Answered on 7/27/11, 12:54 pm


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