Exempt property

October 9th, 2008 by Questions

I have claimed the equity in my principal residence as exempt for $12,000. I have not been discharged; however, I want to move and sell my house. Do i get the $12,000 from the sell of my house. I would like to use the proceeds for moving expenses and rent. Thanks.

Posted from: British Columbia


One Response to “Exempt property”

, A licensed trustee said:

You might have a problem here – I think you should speak to your trustee.

The exemptions are designed to allow you to maintain some basic standards of living. If you convert your home equity exemption into cash and you don’t intend to re-invest it into a new house then the cash may lose it’s exempt status (ie your trustee may take it for your creditors).

The safest thing to do is wait until you have been discharged from bankruptcy before you do anything with the house…

I still think you should start by talking directly to your trustee…

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