Chapter 7 House Exemptions
Aurora Illinois Bankruptcy Lawyers & Attorneys
Jesse Barrientes: Okay. I just had a question. I want to flip back a little bit to the whole house thing, the exemptions we have, $30,000.00. If my house was worth more than that and the equity was worth, maybe, say $45,000.00, does that necessarily mean the trustee is going to sell my house?
David Siegel: Not necessarily.
Jesse Barrientes: What do they look at?
David Siegel: Well, they're going to look at what they can get for the house and pay the creditors once it's liquidated, so if someone's going to sell your house they have to factor in the cost of sale, five or six percent to a realtor, closing costs, title fees. The trustee's going to look at what's going to be left.
Jesse Barrientes: So if a couple thousand dollars are left, he's probably not going to sell it?
David Siegel: Correct. It's not really worth the trustee's time to pay the creditors a small amount of money, if that's all they're going to receive, a dividend.
Jesse Barrientes: I just wanted to make sure the folks at home in Aurora – because that's something I certainly think they'd be thinking about. Back to the car situation. If I do a bankruptcy, if I do a Chapter 7, am I still going to be able to purchase a vehicle? Am I still going to be able to have credit cards?
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See Also:
Chapter 7
Misconceptions about Chapter 7
Life after Chapter 7 bankruptcy
Privacy is protected in bankruptcy
Household income qualifications
Converting Chapter 13 to Chapter 7
Converting Chapter 7 to Chapter 13
Chapter 13
Using Chapter 13 to save a home
Choosing Chapter 13 versus Chapter 7
Debt consolidation & late fees
Administrative fees & the bankruptcy trustee
Chapter 13 payment plan dismissal
