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Selling home to pay debts before filing for chapter 7, can the chapter 7 trustee force sale if we don't sell prior to filing

Asked over 3 years ago - Seattle, WA

Bankruptcy Chapter 7 Bankruptcy Filing for Bankruptcy

I am in Washington State. Our home is assessed by the county. Land $269,000 and dwelling $150,000. If you use your home to pay off the debt we owe, (debt $75,000, mortgage $200,000) can the trustee sell our home/property for less than $275,000 and then go after our other few assets if we file a chapter 7?

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Attorney answers (2)

Theodore Lyons Araujo

Reputation Level 20

Answered over 3 years ago. Bankruptcy Attorney in Syracuse, NY.

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I am not a practcing attorney in your state, but you should know a few general things. First, it is the fair market value and not the tax assessed value that is pertinent. Having said that it is very unlikely that a trustee would attempt to secure and sell an assett that has no equity.

Do yourself a favor and go speak with someone. Many bankruptcy attorneys provide the first consultation for free. Few people lose any of their property in bankruptcy. Good Luck!

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Dainen N Penta

Reputation Level 10

Answered over 3 years ago. Bankruptcy Attorney in Seattle, WA.

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I hope you will take the time to contact an experienced bankruptcy attorney to discuss your situation with her/him. Debt and real estate can be extremely complicated, especially when you throw bankruptcy into the mix. Even though the assessed value of your property is $419,000, the fair market value of your property is usually quite a bit higher, even in the current market. You haven't indicated what type of debt the $75,000 is made up of or if you have other liens or secured debt on your home, but your situation is very serious. Trying to handle things on your own could also jeopardize your bankruptcy relief if you have to file later on. Please, contact an attorney who can discuss your situation with you and help you develop a strategy that is in your best interests.

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