Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hello, and thank you for contacting Just Answer. My name isXXXXX am a bankruptcy law professional, and I look forward to answering your question this evening.
Under rule 703, you may fall a little short, leaving a little equity exposed in the bankruptcy, but one thing to consider is how big that risk actually is. If, for example, the exposed equity is less than $1000, for example, the trustee is significantly less likely to want to go after the house, because the cost and time involved with seizing and selling the home may significantly outweigh any potential value to the trustee and creditors.
Ultimately it is impossible to know for sure how a trustee is going to act (different trustees approach each issue differently). However, with a very small amount of exposed equity, the risk to the home should be equally as small.
Ultimately, if you have not already, I would strongly encourage you to use the assistance of a bankruptcy attorney in California in filing, in order to make sure that you are doing everything you can to protect your assets. For a referral to an attorney in California, the state bar association has a referral service at:
or online at:
I hope this helps, and let me know if you require any additional information or need clarification of anything I have said (never be afraid to ask for clarification!). Otherwise, please remember to RATE my answer positively so that I can receive credit for my work.
Thank you I was reading Bankruptcy book and it said that 8 -10% of house value if not exempt, trustee will not take it. Do you think is it correct?
That sounds like a fair approximation, yes, but it is only that, an approximation. Under 10 %, and you have to wonder if it is worth the trustees time and expense to seize and sell the home, particularly when trustees do not want to have to hold on to a property for too long, and so are unlikely to wait out a sale for the highest bidder. In all things, you have to go in knowing the risks, but 8-10 % certainly sounds like a reasonable guess. Again, having an experienced bankruptcy attorney assist in filing the petition will help make sure that all avenues for protecting property are covered.
Let me know if you have any further questions or need additional information, it has been a pleasure chatting with you. If you do not have any further questions, please remember to RATE my answer so that I can receive credit for my work.
You are most welcome.
where to rate the answer?
What happens now? If you haven’t already done so, please rate your answer above.
Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).