topic Re: During a Chapter 7 did the trustee sell your home? in Bankruptcy

During a Chapter 7 did the trustee sell your home?

Lundy25 — Tue, 02 Dec 2025 03:13:11 GMT

I want to file a chapter 7 bankruptcy, but I'm scared the trustee will sell my home.This will be my second time filing bankruptcy, first time was a chapter 13. Just curious to see if its common they sell your main home.

Re: During a Chapter 7 did the trustee sell your home?

NoMoreE46 — Tue, 02 Dec 2025 03:32:18 GMT

No they cant make you sell your primary home.

@Lundy25 wrote:
I want to file a chapter 7 bankruptcy, but I'm scared the trustee will sell my home.This will be my second time filing bankruptcy, first time was a chapter 13. Just curious to see if its common they sell your main home.

Re: During a Chapter 7 did the trustee sell your home?

FicoMike0 — Tue, 02 Dec 2025 04:46:07 GMT

Haven't done it myself, but a close friend did bk7. He had a homestead exemption, maybe $125,000. If his equity was more than that, he was responsible for the excess. In his case, he would have had to sell, since he didn't have any way to come up with much.

I know this, because he had me do a pre inspection. Maybe I made some things look a little worse, oh, are those loose shingles? Wow, what's going on with the septic? Anyway, he had to hire an appraiser, who came in just under the limit. Got a property tax reduction with the low appraisal too!I

Re: During a Chapter 7 did the trustee sell your home?

despritfreya — Tue, 02 Dec 2025 10:29:36 GMT

@Lundy25 wrote:
I want to file a chapter 7 bankruptcy, but I'm scared the trustee will sell my home. This will be my second time filing bankruptcy, first time was a chapter 13.

If there is sufficient equity in the home over the allowed exemption the Chapter 7 Trustee can and will either demand you pay him/her the excess or he/she will market and sell the home. If sold, upon close of escrow and after valid liens and closing costs are paid, you will be paid the exemption amount and the balance will be used to pay creditors, the Trustee and his/her attorney (if any). The Chapter 7 Trustee's job is to liquidate assets for the benefit of creditors.

Did you originally file Chapter 13 due to this issue?

Des.

Re: During a Chapter 7 did the trustee sell your home?

SUPERSQUID — Sun, 07 Dec 2025 22:11:09 GMT

Filing a chapter 13 might be a better option if your equity in the house is more than the exemption. You can look up the homestead exemption for your state. If your income is above your states median income your bk 13 will be a 5 year 60 month plan, if your income is below the state median than your bk 13 repayment plan will be 3 years 36 months.

Bankruptcy can be a complicated issue and attorney will generally give you a free consultation, I would consult an attorney on this issue.

Re: During a Chapter 7 did the trustee sell your home?

sccredit — Tue, 20 Jan 2026 16:33:37 GMT

Yes, I had a Ch 7 trustee sell my home. BK was related to a failed business and we had substantial equity in the house ($300k-ish).