I need to sell my Texas homestead, but I also need to file chapter 7. Will I lose my equity to the bankruptcy court?

It's possible if you are not careful.

If you have a lot of equity in your home such that you have to choose the exemptions under Texas law to keep it, you may not want to sell your home until your chapter 7 bankruptcy case is not only discharged but closed. A Houston bankruptcy judge ruled that under Texas law, if you sell your home during a chapter 7 and don't reinvest the proceeds into another home within 6 months, the chapter 7 bankruptcy trustee can take the money.

If this is your situation, call our office and make an appointment to discuss your situation. It may take some "strategizing" but I'm sure we can find a way to deal with the problem. Your home in Texas is safe from creditors, it's just that if you sell your home, and your bankruptcy is not yet over and closed, the proceeds must be put into another home, or you could lose them.I