Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Over 34 years, I have assisted my clients with debt problems having filed more than 32000 Chapter 7 and Chapter 13 Bankruptcy petitions.
Thanks for your question. If you home exceeds the allowable homestead exemption, the house would be ordered sold. And with the proceeds, all lien holders are paid off first. After that, you would receive the remaining equity up to $75000 would be paid to you. Further, if there is any excess remaining, it would be used to pay your unsecured creditors.
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Thank you for your qick qnswer.
What if there is a back tax from IRS and capital gain tax? will these get paid before the lien judgment debt with the money from the home sold?
In case of bankruptcy, the debts listed in bankruptcy become primary I heard. Will these debts listed in BK get paid before lien judgment debt(which is not listed in BK) with the money from selling my primary home by BK court order?
All liens recorded against the property are paid first unless the lien was recorded within 90 days of filing of the BK. In that case, your attorney can argue that the lien is voidable. this does get technical so you are best advised to consult with an attorney,
I have a 300,000 judgment lien on my primary home. loan balance is 1.1mill and the current market value is 1.5mill if sold at normal housing market. can you advice what to do to resolve the 300,000 judgment lien issue?