Chapter 7 Bankruptcy Trustees are Taking People’s Homes That People Thought Were Protected by the “Homestead Exemption” in Bankruptcy!
What Happens If I Have a Rising Home Value in Chapter 7 Bankruptcy?
I recently answered a bankruptcy question on Avvo.com, in which I had to, for the first time, explain why all the attorneys who had answered the question before me were wrong! The question was whether a Chapter 7 bankruptcy Trustee could take and sell the Debtor’s home if it went up in value above the amount that was exempt while the case was still open. The issue came up because the Trustee had the case staying open to deal with non-exempt funds the Trustee received from other assets.
My answer was yes. The bankruptcy trustee can sell the home as long …