Selling Your Home During or After Bankruptcy in Minneapolis, Minnesota
No matter how much you love your home, when you file bankruptcy a question that likely will pop into the back of your mind is, if I file will I ever be able to sell my home? The short answer is yes. Although you have filed a bankruptcy, you are still able to sell your home down the road and keep all of the exempt net proceeds from the sale.
When you file bankruptcy you must list all of your assets, including your home, even if you intend to keep it. When listing your home or any real estate, you list the fair market value and deduct any liens, which will leave you with the equity. In Minnesota the current homestead exemption is up-to $480,000 in equity and the current federal homestead exemption is up-to $27,900 or if you are married $55,800. What this means is if you sell your home, you still keep the equity up to the exempted amounts.
Now, if you plan on selling your home during or after bankruptcy there are a few things to know. For example, you will need a certificate of exemptions from the bankruptcy court. The title company completing your closing will likely need this document before moving forward on the sale. This is due to the fact that when you file a case, your property becomes property of the bankruptcy estate, 30 days after your 341 hearing is concluded your exempted property belongs to you again. This certificate certifies your exempted property belong to you.
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If you have any questions about bankruptcy and your home, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!
