Selling Your House before Bankruptcy
Many people may not need to worry about what effects of selling a house could have when they file for a Chapter 7 bankruptcy, but recently I had a Chapter 7 Debtor who did sell her house within the last 6 months. We had to include the proceeds she received in her pocket to determine if she qualified for the Chapter 7 bankruptcy. Unfortunately, she did not qualify, but the positive thing is we only have to wait a couple of more weeks and we can file her Chapter 7 case because she sold her house in June and if we wait until January, then we don’t have to include that income in on the means test to determine her qualification. If you have any questions or concerns as it relates to selling property prior to filing, please consult with your bankruptcy attorney to find out what effects it could have.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
