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Purchases/Sale after Ch7?


dessp1rate
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Is there a specific length of time after a BK discharge one can sell their home? Is it state specific? I'll check those links too, but just curious if anyone knew off top of their head.

Also, is there a specific length of time one must wait to file Ch7 BK AFTER selling their home? A friend was told one year. However, she made no money off sale. It was sold for pay-off.

Mine, OTOH, has approx. 30K in equity. (This sentence is left as an exercise for the reader of this post, in conjunction with previous one posted earlier).

I'm considering selling and putting money down payment on new abode in a different area. Of course, financing will probably be out of the question, but shoot, I got a brand new car two days after my discharge so ... things have a way of working themselves out sometimes. *shrug*

TIA.

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IF you are going to make a profit from the sale of your home post-discharge, then you'll likely find the Trustee standing there with his hand out for the money. AL does not exempt proceeds from the sale of property.

To be safe, you should wait a LEAST 7-8 months, a year would be better. If you did not intend to sell the house when you filed, then the Trustee would have no expectation of available funds.

If you take ALL the money and put it toward the pruchase of the new house, it should not be a problem, you just don't want to be left holding cash.

Your friend's 1 year wait would be applicable if selling a home PRIOR to filing, any transfer of assets like that would mean waiting a year before filing. You don't want it to look like you're dumping assets so you wait a year.

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  • 2 weeks later...
IF you are going to make a profit from the sale of your home post-discharge, then you'll likely find the Trustee standing there with his hand out for the money. AL does not exempt proceeds from the sale of property.

To be safe, you should wait a LEAST 7-8 months, a year would be better. If you did not intend to sell the house when you filed, then the Trustee would have no expectation of available funds.

If you take ALL the money and put it toward the pruchase of the new house, it should not be a problem, you just don't want to be left holding cash.

Your friend's 1 year wait would be applicable if selling a home PRIOR to filing, any transfer of assets like that would mean waiting a year before filing. You don't want it to look like you're dumping assets so you wait a year.

Thanks again, LIR. You always have the 411!

I did not have any intentions of selling at the time of BK and am only rolling the idea around in my head now. Would like to move closer to my relatives. Nothing concrete a'tall. I'm just considering all options and trying to plan the most positive way to start rebuilding credit status and cash flow. Keep in mind, I've firmly decided I'll never have the plethora of "plastic cash" I once had, however, it is looking more and more like "actual cash/greenbacks/paper moola" has just gone out of style these days. It's almost as if "cash" is taboo. :shock: So, re-establishing credit is a must it seems.

One last question if you don't mind?

What about home equity loans? If I'm going to stay here in this house I fought vigilantly to keep during this process of BK, I really need to do some upgrading/maintenance. Perhaps even an additional room for us. It definitely needs new paint, carpet, etc. [exterior and interior work] before I could ever consider selling anyway. It's only 8 years old, but kids have a way of helping a house age if you know what I mean?

I'm going to crosspost this to the Mortgage group as well as I'm unsure which group is best suited for this question. LIR's here, so, that's THE BEST AFAIC! :wink:

TIA.

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There is no reason you could not apply for a HELOC post-discharge, but it will likely be difficult to get. At the very least, it will take some shopping around. Some people manage to get a mortgage mere weeks post-discharge, but I can only wonder at their rates and what their credit status was before they filed.

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