QUESTION
How soon after filing, are they allowed to sell their house?
Asked on Apr 15th, 2013 on Bankruptcy - Indiana
More details to this question:
My parents filed for chapter 7, then, listed and sold their house.
8 ANSWERS
Bankruptcy Attorney serving Alpena, MI
at
Carl C. Silver Attorney at Law
Update Your Profile
Most of the time a sale won't go through if a bankruptcy pops up during the sale process. Legally your parents should have gotten permission from the bankruptcy court to sell their home. If they got more money in their pockets than their claimed exemption they may have problems.
Answered on Apr 17th, 2013 at 1:35 PM
Bankruptcy law doesn't prevent your parents from selling their house, but as long as their bankruptcy case is open, they must obtain court permission to close the sale.
Answered on Apr 17th, 2013 at 1:34 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
You should be posing this to your parents counsel, but generally after the Trustee has had time to abandon its interests.
Answered on Apr 17th, 2013 at 1:33 PM
Bankruptcy Attorney serving Livonia, MI
at
Charles J. Schneider, P.C.
Update Your Profile
Once the Court closes the case.
Answered on Apr 17th, 2013 at 1:29 AM
Deborah F. Bowinski
As long as their bankruptcy case remains open they will most likely be unable to close on the sale without an order of abandonment from the judge in the case. They should speak with their attorney to discuss timing and what will be required to obtain such an order.
Answered on Apr 17th, 2013 at 1:26 AM
Bankruptcy Attorney serving Phoenix, AZ
at
Law Office of D. L. Drain, P.A.
Update Your Profile
It depends on several things: value of house, amount of debt, exemption allowance, position of the trustee and requirements of title company. Ask your parents to talk to their bankruptcy attorney for guidance.
Answered on Apr 17th, 2013 at 1:15 AM
A chapter 7 bankruptcy usually takes about months from the date of filing till discharge and close of the case. Normally the house is part of the bankruptcy estate minus exemptions allowed so if the Chapter 7 trustee decides that there is no assets to be distributed by the estate to creditors the debtor is allowed to sell the house and there might not be any equity in it after all.
Answered on Apr 17th, 2013 at 12:09 AM
It is illegal to sell a house in bankruptcy until the trustee abandons the real estate from the bankruptcy estate.
Answered on Apr 17th, 2013 at 12:08 AM