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

Answers:

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. 


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