Homeowner · NY · Member since 2008 · 1 post · 0 votes
I am on the brink of filing bankruptcy. I currently have my house on the market. IF it sells, I MIGHT net almost $90k, but it looks like I may have to settle for considerably less. I live in NY which has a $50k homestead exemption. I have $180K in other debt. I don't know at what amount a trustee would be interested in taking the house. I have three questions: If I sell the house before I file, can I keep the $50k amount of the homestead exemption if I use the remainder to pay creditors? If the house isn't taken in bankruptcy and I sell it after discharge, will the bankruptcy court take anything over the $50k, and for how long? If I lease the house with an option to buy I file, how will that be handled in the bankruptcy? HELP! and thanks!
Real Estate Consultant · Minneapolis, MN · Member since 2010 · 8 posts · 0 votes
16y
Here is my understanding, although I am not an attorney.
You only benefit from the homestead exemption if you currently own the house when you file. You can't sell the house, collect $90k and keep $50k claiming a homestead exemption.
You probably would benefit from having an appraisal or city appraised tax value that shows as little equity as possible in the house. This will make it less attractive to the trustee.