Can an undischarged bankrupt sell house and keep profits?
Since 2009 I have been an undischarged bankrupt. The bankruptcy court judgement was issued that I should pay $30,000 to be discharged which I could not do.
So I am still undischarged, while the trustee discharged themselves in 2013.
I have a house which I want to sell. Will I be able to keep the profits after paying off the mortgage? Will I have to declare to the real estate lawyer that I am an undischarged bankrupt?
Since you are an undischarged bankrupt, all the debt outstanding as at the date you filed bankruptcy, plus the $30,000, plus any debt accumulated since then, are still owed by you.
Any profit on the sale of the house is vulnerable to seizure.
If you owned the house at the time you filed bankruptcy the trustee would have filed a lien on it, and you will not be able to sell the house, without first dealing with the lien.
Earl Sands, Licensed Insolvency Trustee