Dear LAWGURU-
I recently went through Bankruptcy Chap. 7. While at my "Creditors Meeting" with the Trustee, I was asked various questions in general. The Trustee was concerned about some funds I received from my Grandfather. I listed the $5,000.00 on my Schedule C as an Amendment, because the funds were received after I filed. The Trustee didn't seem to agree, and trust my answer. None the less, he said the money was not exempt property, and he requested the funds to be sent to him in a cashiers bank check. I pleaded with him about his decision, since 1. I'm not employed, 2. I'm on foodstamps, and 3. My home is in foreclosure. He seemed to not care what my situation is/was, etc. So, he asked me, what do you want to do? You have 3 options he said. 1. Mail me the money as I asked, 2. Have your homestead exemption removed, 3. I will put a lean on your home, and if none of those options work, then I'll just cancel your bankruptcy and you'll have to re-file at some point. My question to you is, what is this homestead exemption removal going to do?... Wouldn't I be better off taking the lean on my home, knowing that it's in foreclosure?... Any recommendations??? Thanks, James :)
If you cancel your homestead exemption, which most people do anyway if they are just losing the house in foreclosure, you get an extra $5000 worth of exemption, which would protect the money. You probably should see a lawyer, though, because some of your forms will need to be amended, and an error could cost you the $5000.
