Expert: Terry Leeders - 9/23/2007

Question
in a chapter 7 filing, how do you save your home if the trustee finds that your homestead is over the limit, and objects to the exemption? can you volunteerly dismiss your own bankruptcy if you do not agree with selling your home, under the objection of the trustee? My homestead exemption is over by 5000.00. What can I do to save my home?

Answer
Unfortunately, you are going to have a fight on your hands.  In some cases, the court will allow you to voluntarily dismiss, but that will have to be done on motion.  You can always pay the trustee the amount that he would have received if the home was sold, the trustee would always rather have cash!  You should have your attorney speak with the trustee, to see if they are willing to accept cash, or a payment plan.