I’m trying to sell my house. Is it possible to file bankruptcy while my house is on the market?

If so, what are the consequences of doing so.

Asked on June 28, 2009 under Bankruptcy Law, Virginia


J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

I am a lawyer in CT and practice in this area of the law.  There is a federal law that is known as the Homestead Exemption.  This law generally says that if you have less than 75K in equity in the house, the house is not subject to creditors taking that cash.  I suggest that you consult with a lawyer in your state that can determine this issue in advance of your BK filing. 

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.