There is some equity in the house. I filed a Chapter 7 BK. I did so 1 week before the bank's foreclosure sale . Will I be able to sell the house and realize the profits instead of the bank foreclosing during my Chapter 7 case?
Only with permission of the court and only if you were able to exempt the equity.
Jonathan Leventhal, Esq..
Leventhal Law Group, P.C.
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It depends on more facts. If there is significant equity, the trustee will sell it and finds will go to creditors (and the Trustee). Even if the trustee is not interested, you won't likely be able to sell until your case is over unless the Trustee abandons the estate's interest or approves the sale.
I agree that the Trustee would have to abandon the property. But in most cases, if the proceeds from the sale of the property would help pay debt owed to your creditors, the court is not going to give you the money instead.
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Real Estate Attorney
The first question is whether you are eligible to keep the house in bankruptcy. The answer depends on the amount of equity in the house and your available exemptions. If you can keep the house, it's probably better to sell the property after you obtain a discharge. A chapter 7 bankruptcy takes about 2 to 4 months to complete in Los Angeles. As other attorneys have noted, your house belongs to the bankruptcy estate and you would have to file a motion for authority to sell the property.
I agree with the previous answers, but wonder how sure you are that there really will be equity left over. You should look at the realistic potential sale price of the home and them subtract 8% to arrive at a good approximation of your net equity after the deduction of closing costs, etc. Whatever equity is left, if you can exempt it under the code, then you would be able to retain those funda. A sale during the BK requires a motion and approval of the court first.