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Would creditors be able to seize proceeds from a sale of my home or would it be protected under chapter 13 exemptions?I own two homes and I am thinking about filing for Chapter 13 bankruptcy. I plan to forfeit home #1 and keep home #2. If I sell home #2 after filing for Chapter 13 bankruptcy, can creditors seize the proceeds from that sale? Attorney answers (2)
To follow up on the previous answer, the homestead exemption in Washington State is $125,000, which means that creditors cannot touch up to $125,000 in proceeds that you could receive from the sale of the home. It is accurate that you will need permission from both the trustee and the court to sell your home. Talk to your attorney about this before you file.
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Lesley Abigail Hoenig, licensed in Michigan and 2 other states
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Answered over 3 years ago.
Bankruptcy Attorney in Mount Pleasant, MI.
If you sell your home after you file chapter 13 you are going to need court permission before you are allowed to sell the home. I do not know the exemption for Washington state, but how much of the proceeds you get to keep depends on the exemption. You will have to turn proceeds above and beyond the exemption over to the trustee to disburse to creditors. If selling your house can pay for all your debt, it is a bit pointless to file a chapter 13.
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