The likelihood of there being a house inspection during your Chapter 7 bankruptcy case is very slim. There are two possible reasons that someone would be sent to your house to inspect your property during your bankruptcy proceedings. One reason the bankruptcy court might be interested in the value of your property would be if the trustee has determined that your house or the contents of your house should be made available to pay your unsecured creditors some portion of the debt you owe them. Assets that your unsecured creditors are given access to are known as “non-exempt” assets.

Another reason that an inspection of your house might be required would be if the trustee has reason to believe that you have provided false information about the value of your house or the value of your belongings. As I have mentioned in an earlier blog, during a bankruptcy proceeding you are required to list all of your assets and liabilities. Failure to do so may be considered an attempt to defraud or mislead the court. This can result in a delay or dismissal of your bankruptcy, or in a fine, or jail time.

If you live in Denver, Aurora, Arvada, Brighton, Broomfield, Commerce City, Englewood, Highlands Ranch, Lakewood, Lafayette, Littleton, Northglenn, Westminster, Wheat Ridge, or Golden, Colorado, and have any questions please feel free to contact me.  

Kevin D. Heupel, Colorado Bankruptcy attorney, 303-955-7570, COBankruptcyHelpEmail, free-consultation form.