bankruptcy

What is the name of your state? Kentucky.
I and my wife are going to file chapter 7 bankruptcy and we have our house up for sale , in kentucky, we can keep $10,000.00 equity in real estate. the question does any one know if our home sells before we file or after we file do we geet to keep the equity? or does the equity only count if the house is sold by the trustee? This is confusing can Attorney Oney or Lady in red help me? thanks tommy 522!

[Ladynred]

Per the KY statutes, the proceeds from the sale of your home are exempt:

In general, a debtor may claim exemption of his homestead and certain personal property from attachment and execution of a judgment, or in a bankruptcy proceeding.

* The Kentucky statutes permit exemption of a debtor's real and personal property which are used by the debtor and his family as a residence in the aggregate value of $5,000.00.

Some of the items of personal property which may be exempt include:

* burial plot to the extent that the homestead exemption is not used,
* Proceeds from the sale of a homestead, $5,000,

I checked the actual statutes, and they do say only $5000 exemption for homestead and nothing about being able to double that for husband and wife. If a lawyer told you it was up to 10K, then perhaps the law has been changed and the state hasn't update their on-line statutes yet.

then if we sell now and keep the $5,000.00 or $10,000.00 equity it wont be taken by the trustee, as too much cash or would we need to spend it and keep count of all reciepts? we will need the funds down the road to live on i am disabled and med bills are crazy . i grt medicare in 3 months and trying to hold out till i get it! my meds are over $350.00 a month and i been in 2 hospitals in 5 weeks and could go back anytime. its almost impossiable to live on social security disibility after working all your life! and the GREAT state of KENTUCKY ain't no HELP! with their discriminating KRS laws and UNREALISTIC JOB QUALIFICATIONS STANDARDS! sorry for babbling hafd to get it off my chest. also when we sell or if we will be leaving the state of KY after living here 49 of my 51 years on earth.