What can my friend expect the BK trustee
to do with his house?
My friend DB is planning to file pro se Chapter 7
BK. DB has been out of work for a long time. The CA, EDD has been after him for years, they have a lien on his property for about $6,000.00 and they say that he owes them total $18,000.00 to date. DB is also past due on his property tax and the tax collector is threatening to sell his home. DB owes $17,000.00 to the L.A. county tax collector. DB owns his home outright and it is worth about $86,000.00 according to Zillow.
DB has no credit card debt
. He only has $1,000.00 total of personal property. He has nothing else, No stocks, bonds, 401K, etc. DB is legally married however he has been separated from his wife for about 4 years. DB lives in his home alone. DB is the only name on the Grant deed because the mortgage company wouldn’t allow his wife’s name on the mortgage due to her bad credit. DB is 53 years old.
DB wants to file for the $50,000.00 exemption credit on schedule A. Do we understand this correctly, DB will get the $50K and then what’s left will go towards his debts after the trustee handles the sell of his home? DB hopes that is the case.