Does this matter if I am in North Carolina? The homestead exemption is $35,000. If the house sells for even $250K and the first and second mortgages total 120K, and my total debts are $23K, won't there be quite a bit of money left over, even with the 3% the trustee takes, and the bankruptcy lawyer fees? I am approximating about $65-70K. Who gets that money after my debts are paid?
A: Any money remaining in the bankruptcy estate at the close of the case, is returned to you -- unless your ex-partner convinces the court to pay some portion of the money to him -- under the legal theory that it would be unjust to pay it all to you, because your ex paid money and made improvements towards the purchase of the property.
And, can my ex-partner contest or prevent the mortgage, and thus the house, from being included in the bankruptcy at the creditors' meeting?
A: Based upon what you've disclosed, I don't see any grounds to contest the sale.
Can he make a case for the house not to be sold?
A: See above.
I am completely penniless, other than about $2000.00 which I will use to pay for the actual bankruptcy. Also, if my ex-partner cannot buy me out or refinance, what happens to the excess money.
A: The money will be returned to you at the close of the bankruptcy, and it will be between you and your ex-partner to decide how to split the proceeds.
Hope this helps.