Was getting ready to file bankruptcy and just sold my home. Am I allowed to keep any of that money before filing? As I wanted to use the money in order to get and furnish an apartment for me and my son. Or do I need to wait a certain amount of time before filing? Also, how far behind in payments do I have to be with my creditors before they start to sue me and try to garnish my wages if I have not filed?
Chapter 7 Bankruptcy
Posted on Wednesday, December 27, 2006
posted by Questions @ 8:57 am
1 Expert Comment:
At December 27, 2006 |
10:26 am
, Barton Goth, GCO Inc. Bankruptcy Trustees Said...
The only way you are entitled to keep these monies is if you turn them back over into another principle residence. If you use these monies (what the law considers non-exempt property) and purchase furniture (which is considered exempt property) prior to a bankruptcy you will have committed an offense under the bankruptcy and insolvency act and this can prevent you from being released from a bankruptcy until you have provided the full amount of monies from the sale of the house into the bankruptcy estate.
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