too much equity in home?

[2farindebt]

What is the name of your state? Indiana

Our home is appraised for quick sale at $125,000. Our mortgage balance is $100,000. We understand Indiana law allows $15,000 exemption on our home if we file jointly. Do any other costs come out of the proceeds of the sale of our home or will the trustee take the entire balance of $10,000 to pay our creditors? If he has to take the entire balance, should just one of us file to take advantage of the tenancy by the entireties exemption so we won't lose our home? We both have debts but would be willing to discharge just those of one spouse to save our home.

Thank you so much Indiana Filer for the information! I was beginning to think there was no one out there who could help. Our dilemna is that our lawyer is telling us NO costs come out of the sale of our home except our exemption. (I will say that bankruptcy is NOT his speciality). Did you actually have to sell your home or did the trustee look at the "numbers" and decide there wasn't enough "left over" to sell it? Do regular real estate agents sell your home or does the trustee do this somehow? Any info you can give me regarding your experience will be so helpful. We, too, will be filing in Southern Indiana court. Thank you again!

[bigun]

I'd suggest using a lawyer who does a lot of bk work.

[Bigfoot]

You'll probably be responsible for paying property taxes til the day of closing.

[bigun]

Writer, if you are near Indianapolis, there is lawyer named Dorene Philpott who post here with advice ever so often. She seems quite competent. A google search will get her contact info.

I really appreciate all the advice and suggestions you folks have given me. We definitely will have to be more 'pro-active' where our bankruptcy is concerned! I've made a couple of calls to realtors and they also believe the commissions, closing costs, taxes, etc., come out of the sale price, which lowers our equity even more. Nothing is definite yet, but I hope we're heading in the right direction!