QUESTION
Can you sell a house that is in a Chapter 7 bankruptcy?
Asked on Aug 09th, 2011 on Bankruptcy - Utah
More details to this question:
Can you sell my house with a short sales that's in a Chapter 7 bankruptcy?
12 ANSWERS
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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Yes if the chapter 7 trustee agrees to abandon the estate's interest in the house. I am happy to discuss these issues with you.
Answered on Aug 11th, 2011 at 12:05 PM
Daniel James Wilson
Why would you want to a short sale? There is no benefit to you. I assume you are not trying to keep the house. Why not live there rent free until lender forecloses? Your question is not clear whether you have filed. If you have, your house is part of the bankruptcy estate which the trustee controls. You cannot dispose of property until you get your discharge of debts and the case is closed. I do not see any advantages to a short sale. In my humble opinion they are usually pushed by realtors, who don't know much about bankruptcy law, to get a commission. I am not saying there is no potential fact pattern where a short sale would benefit the debtor, I've just never seen one. Talk to the attorney who filed your bankruptcy.
Answered on Aug 11th, 2011 at 12:01 PM
As long as the trustee has no objection.
Answered on Aug 11th, 2011 at 11:06 AM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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No and there is really no good reason for a short sale if you are filing a Chapter 7 case. Just surrender the property in bankruptcy. There are tax consequences from short sales that you will not have in bankruptcy (particularly in investment property) and there is liability you may have if you short sale a house and the buyer late sues you for defects in the property. Bankruptcy will not protect you from liability after you file the case and you cannot file again another Chapter 7 case for 8 years. Bottom line is that only the real estate agent gains from a short sale if you are filing a bankruptcy case anyway. If you insist on doing a short sale then just wait until the Chapter 7 case is over in about three months after you file.
Answered on Aug 11th, 2011 at 10:29 AM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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If the trustee abandons. But why.bother? You'll have no obligation on it.
Answered on Aug 11th, 2011 at 10:18 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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If you want to sell a house while in chapter 7 you must first get permission from the trustee.
Answered on Aug 11th, 2011 at 10:18 AM
Glen Edward Ashman
No, unless the court approves it. And generally that would be a completely bad idea, since the bankruptcy can discharge the debt anyway. The only time you might try is, with your lawyer (and if you do not have one - get one - you need one NOW), and the Trustee in agreement, you might be able to get a short sale through that puts some cash in your pocket AND creditors' pockets. This is complex, and would require an agreement between two sides and a court order. You can't do it on your own. You MAY in an unusual case find ways with counsel to get a small windfall. In other words, it can cost you money to be pro se.
Answered on Aug 11th, 2011 at 10:05 AM
It is possible but your case trustee needs to abandon the property. It is not a simple matter and you may need an attorney to make a motion for relief from stay. The buyers attorney and title company will let you know what is required. Why would you want to do the short sale if you are already in Ch. 7 ? Think carefully about this, do a little cost-benefit analysis. What is in it for you ? Short sales are usually nightmares to get to closing. Is it worth it? Why not just move on with your life ?
Answered on Aug 11th, 2011 at 8:39 AM
Bankruptcy Decision Attorney serving San Diego, CA
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Law Office of Daniel G. Shay
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No, not without permission from the court. File a Motion to Sell Property of the Estate or wait till the case is closed.
Answered on Aug 11th, 2011 at 8:38 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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No. The trustee owns your house until he abandons it when he closes your case unless you file a motion to compel his abandonment.
Answered on Aug 11th, 2011 at 8:36 AM
judith runyon
Yes, if Court approves and CH. 7 Trustee has no opposition.
Answered on Aug 11th, 2011 at 8:35 AM
All property, including the house, is property of the estate after filing for Chapter 7. Until the trustee makes a decision as to whether it is an asset that has value for the creditors, it cannot be sold. However, if there is no equity, you can made a request to have the trustee abandon the property to allow you to sell the home.
Answered on Aug 11th, 2011 at 8:31 AM