Sale of house before obtaining discharge

July 14th, 2013 by Questions

I am in the process of a second time bankruptcy.

I have made all the required payments to the trustee, and waiting to receive a discharge statement.

If I decide to sell my house before a discharge statement is received, can any of my creditors have a claim against surplus money I receive from the sale of my house?

Posted from: Ontario


One Response to “Sale of house before obtaining discharge”

, A licensed trustee said:

Technically, you do not have the right to offer your house for sale (or to sell it) while you remain an undischarged bankrupt – only your trustee may offer your house for sale while you remain in bankruptcy.

If your home is sold during the bankruptcy then the net proceeds will be paid to your trustee for the benefit of your unsecured creditors – you are not entitled to any excess proceeds until/unless your debts are repaid in full.

Call your trustee before you do anything further with the house…

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)