Question: I am going to file for bankruptcy and since I have some equity in my house I assume that the trustee will take my house. My question is about the items in the house. I am moving into a much smaller place. If I don’t dispose of all of the furniture, etc, what happens if I leave it there when I move? Will the trustee charge me for disposal or will it be taken out of the amount received from the equity on the house?
thanks
Answer: You will not be charged for disposal. If there is not much equity, it’s likely that the bank will foreclose on the house and sell it. They would be responsible for disposing of any items on the premises. If there is equity and the trustee is selling it, the trustee, working with the real estate agent, would be responsible for making the property ready for sale.
If there are any items of value, you could hold a garage sale prior to moving.