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Interpreting the CCP 704.720 six month window and getting authoritative information about scheduled foreclosure sales.
Alik:
The proceeds will not be safe if you sell and convert. The chapter 7 trustee will wait six months and demand the funds.
Recently, I think trustee Wolf sued and got the funds after 6 months passed. The appellate court held the six months test is part of the exemption and the snapshot test does not apply.
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Dennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503 310-328-1001-voice
On Aug 26, 2013, at 12:00 PM, Alik Segal wrote:
> Listmates,
>
> Here's a question about interpreting the CCP 704.720 six month window and another question about getting authoritative information about scheduled foreclosure sales.
>
>
> Debtor is in the middle of a chapter 13 plan. He has a condo with a mortgage. He is paying the arrears through the plan. Today he has 50K in equity.
>
> He thinks the condo is too expensive and wants to sell it.
>
> If he sells the condo first and then converts to 7, will his proceeds (presumably about 50K) will be exempt in a new or converted chapter 7 case.
>
> CA CCP sec. 704.720 says that
>
> "(b) The proceeds are exempt for a period of six months after the time the proceeds are actually received by the judgment debtor, except that, if a homestead exemption is applied to other property of the judgment debtor or the judgment debtor's spouse during that period, the proceeds thereafter are not exempt."
>
> 1. It seems that if he converts to 7 immediately after selling and receiving the proceeds, the proceeds will be safe regardless of what he does with the money after he receives his discharge. Is this correct?
> 2. It appears to me that the test of "within six months of receiving the proceeds" must only be passed at filing. I would guess that the trustee should not be able to void section 704.720 protection by keeping the case open beyond six months from sale. Is this correct?
> 3. I checked on LPSASAP.com for a scheduled continued sale from before the case and I did not find any. Is LPSASAP the final authority on whether or not there is a foreclosure sale scheduled? If not is there such a source?
> 4. His case was filed in 2010. I believe that a notice of sale is good for 1 year. Is this correct? If so then the bank cannot schedule a sale until they refile the notice of sale.
>
> --
> Alik Segal
> Alik.Segal@gmail.com
> 310-362-6157
> California Central District
>
The post was migrated from Yahoo.