Can a bankruptcy trustee in FL sell my home after a Ch 7 discharge if I didn't exempt it and it is upside down over $20,000?

Orlando bankruptcy attorney. The short answer is yes. If you do not claim your house as Homestead, the trustee can sell it even if it has no equity. In the past that never happened because no one was willing to buy an asset that had no equity. Apparently some investors have figured out a way to buy these worthless deeds and negotiate a reduced payoff with the mortgage companies. Seeing this as an opportunity to make money for the bankruptcy estate, some aggressive bankruptcy trustees are selling deeds to investors. The reason people don't claim the Homestead exemption is that you can claim for personal property exemptions without Homestead. Trustees will threaten to sell the house unless the debtor changes their exemptions so that some money has to be paid to the trustee. You can object to the sale if you do it properly. You should call your bankruptcy attorney if you had one. Eric L. Bolves, Esq. 2110 E. Robinson St., Orlando, FL 32803 407-894-1002 www.TheLegalCenter.com www.BKCinfo.com

There has to be more to the story, it doesn't make sense. Don't you have a homestead exemption anyway?

The case you refer to is not on point. It really only applies to a demand for turnover of property to the trustee when the trustee does not need immediate possession. It also restates the law of the Florida Supreme Court in Osbourne. I am unaware that there is any such case in Florida that stands for the proposition you have stated. In fact, a number of the Trustee's will take unexempted homesteads and are arranging short sales for profit. Some sell to third parties on an As Is basis. When you elected to not exempt the property, it became an asset of the bankruptcy estate and well within the right of the trustee to try and sell for the benefit of the creditors. I assume you did not have an attorney, as i believe most experienced Florida bankruptcy practitioners would have warned you of the possibility of a sale or transfer of the property.

The trustee you refer to is probably the substitute trustee in the mortgage not the bankruptcy trustee.

Florida exemptions gives you an option of exempting your primary residence. The trick is that you actually need to claim that exemption. If the house was not claimed as exempt, the trustee can try to sell it, it does not matter if there is no equity in the property, the trustee might find a buyer anyway. I would advise you to contact a bankruptcy attorney, if you do not have one already, and try to resolve this situation. It also appears that you eventually want to give up the house anyway. You have two weeks to relocate. You can also contact the buyer (if you know who it is) and ask if he will give you a little bit more time to move out. For example some banks give people two weeks or so to peacefully move out from the property once it is sold on the auction sale. You can also try to rent the house from the potential buyer. Again, some banks are flexible and they allow people to rent the property until it is sold to a third party. Disclaimer: This information is intended to inform, not to advise, and should not be relied upon in lieu of consultation with appropriate legal advisors in your jurisdictions. -- Eviana Martin Attorney & Counselor at Law Martin Law Firm, P.L. 3701 Del Prado Boulevard Cape Coral, Florida 33904 Telephone: (239) 443-1094 Facsimile: (239) 443-1168 E-mail: [email protected]

You could attempt to amend your petition to exempt the property. However, this will likely limit the other exemptions you're allowed to use and could open up a can of worms depending on what your assets are and how much in exemptions you have used. It would be wise to consult an experienced bankruptcy attorney to assist with sorting this out. Another possible option may be to bid against the potential buyer to retain possession. You would pay these funds to the trustee and they would be disbursed to your creditors.