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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 12367
Experience:  JD, MBA
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How does the sale of a home in bankruptcy in Alaska work? For

Customer Question

How does the sale of a home in bankruptcy in Alaska work? For example, if the mortgage balance is $210,000 and the home is valued at $225,000, does the debtor get their entire homestead exemption paid to them? What if the debtor has to surrender the home because he is unable to afford or meet some of the terms of the contract that would necessitate him selling later anyways?
Submitted: 2 years ago.
Category: Bankruptcy Law
Expert:  TJ, Esq. replied 2 years ago.
Hello and thank you for the opportunity to assist you. My name is ***** ***** I will do my very best to answer your legal questions.

In the example that you provided, the debtor would be able to keep $15,000. The first $210,000 from the sale proceeds would go to pay off the mortgage. The remaining proceeds would be given to the debtor since he can easily exempt that much. The result is the same if the debtor surrenders the property. The lender would have to foreclose, and it would only be entitled to keep $210,000. So the remaining proceeds (if any) would go to the debtor.

Does that answer your question? Please let me know if you need clarification, as I am happy to continue helping you until you are satisfied.
Customer: replied 2 years ago.

So in that same example, what would be the result if the home sold for less than What was owed?

Expert:  TJ, Esq. replied 2 years ago.
Hi again.
If the house sells for less than what is owed, then there is nothing to exempt. Of course, the lender would have to approve.