QUESTION
Is there time to file to postpone sale of a home if we are filing chapter 7 bankruptcy?
Asked on Aug 23rd, 2011 on Bankruptcy - California
More details to this question:
We are in the process of short selling our home and have an offer in on it. B of A said they will not postpone the auction that is scheduled for Aug 28th. Is there time for us to get that postponed while we get the rest of the information together needed to file chapter7?
16 ANSWERS
After the auction you will have 6 months to complete the sale, BOA is so screwed up it has no communication between departments. So continue with the short sale, but remember, the realtor should be doing all the work since you will get little or no benefit from it.
Answered on Sep 07th, 2011 at 8:22 AM
Trusts & Estates Attorney serving Camarillo, CA
at
Law Offices of Larry Webb
Update Your Profile
Yes, you can file an emergency petition, but it is more work, it will cost you more and there is some risk that your case can be dismissed early. You should contact an attorney immediately. Best regards
Answered on Sep 02nd, 2011 at 4:56 PM
Daniel James Wilson
Be very careful here. Do not trust BOFA. They are less than truthful. If you are getting ready to file a Ch 7 why are you bothering with a short sale? A BK will ruin your credit rating if that is what you are thinking. File the Ch 7 as soon as possible, delays the foreclosure sale, live rent free, save your money and find a suitable rental. I see no benefits from a short sale for anyone except the realtor.
Answered on Aug 31st, 2011 at 12:28 PM
Consumer Bankruptcy Attorney serving Worcester, MA
at
Law Offices of James Wingfield
Update Your Profile
Filing a Chapter 7 case (or Chapter 11 or 13) comes along with the Automatic Stay. The Automatic Stay operates as a temporary restraining order with regard to virtually all creditor action, including a foreclosure auction. If the Bank wants to foreclose their choices will be to either (a) wait for the bankruptcy case to run its course, or (b) file a motion for relief from the automatic stay. If your ultimate goal is to sell the house, however, Chapter 7 may not be the proper vehicle for you. If you file a Chapter 7 case, particularly if there are other assets that could become assets of the bankruptcy estate, you will likely not be allowed to dismiss the case voluntarily. Further, to the extent there is non-exempt equity in the house that equity will become an asset of the bankruptcy estate. If your ultimate goal is to discharge other debts, then Chapter 7 is a good option (assuming you qualify under the Means Test). If the sale, you described, is a short sale, and if there are no tax liens, then you may not have any reason for the short sale, and you may be able to simply file your Chapter 7 case and discharge your underlying obligations to the Bank under the mortgage without the short sale.
Answered on Aug 25th, 2011 at 7:52 PM
Bankruptcy Attorney serving Concord, CA
at
William Rubendall Attorney at Law
Update Your Profile
Once a sale date has been set there is no requirement that the lender postpone the date. Filing a bankruptcy will stop the foreclosure. The lender can seek permission from the bankruptcy judge to go forward. You should consider whether a chapter 13 would enable you to reorganize and keep the house.
Answered on Aug 25th, 2011 at 12:56 PM
Debtor's Rights Attorney serving Atlanta, GA
at
Theodore N. Stapleton, P.C.
Update Your Profile
Foreclosure sales in Georgia are held on the first Tuesday of each month so August 2nd is the next possible foreclosure sale date. If you file a bankruptcy by August 1st it will stay the foreclosure sale and afford more time to negotiate a short sale.
Answered on Aug 25th, 2011 at 12:28 PM
Estate Planning Attorney serving Ventura, CA
at
Michie Law Firm
Update Your Profile
Yes. There are several ways to delay the sale. Litigation or an emergency bi filing.
Answered on Aug 25th, 2011 at 12:27 PM
You can file what is known in the business as a "bare bones" petition to stop the sale but then there are two very short deadlines to meet after that must be met of the case will be dismissed. You need a lawyer to help, find one you like.
Answered on Aug 25th, 2011 at 11:35 AM
Bankruptcy Attorney serving Hayward, CA
at
Carballo Law Offices
Update Your Profile
Only the bank can postpone the foreclosure sale. Filing bankruptcy stops the sale by order of the bankruptcy court ("automatic stay"). If you are sure you will have no problems qualifying for Chapter 7 and that is what is best for you to do, then you can file a skeletal petition to stop the sale and then you will have to file the rest of the schedules and forms within the period of time required by the court (normally 14 days). You can not continue with the short sale in bankrutpcy but it can be completed after your bankruptcy case is over. There is very little benefit to do a short sale anyway but those are things you need to discuss with your attorney.
Answered on Aug 25th, 2011 at 11:01 AM
Glen Edward Ashman
Short sales almost always fail. There is no reason that a good lawyer, unless you drag your heels, could not file a Chapter 7 in 4 days.
Answered on Aug 25th, 2011 at 11:01 AM
2 Awards
You would need to file bankruptcy to get the sale postponed. However, once you file bankruptcy you are no longer authorized to sell the property without court approval.
Answered on Aug 25th, 2011 at 8:41 AM
Bankruptcy Attorney serving Livonia, MI
at
Charles J. Schneider, P.C.
Update Your Profile
That begs the question of why you would want to short sell your home. To earn the real estate agent a commission? Why should you care to sell the home? The foreclosure law provides that you may live in the home for at least 6 months' rent free while your statutory right of redemption expires.
Answered on Aug 25th, 2011 at 8:32 AM
Bankruptcy Attorney serving Herndon, VA
at
Maureen O'Malley
Update Your Profile
You need to file a full Ch. 7. Partials are a problem, in that something is always left out. And if you'd be using the Bankruptcy Court just to buy time and then dismiss once the sale goes through, that would be seen as fraudulent and judges are becoming very serious about that.
Answered on Aug 25th, 2011 at 8:14 AM
Bankruptcy Chapter 7 Attorney serving Fort Collins, CO
at
The Salas Law Firm LLC
Update Your Profile
If you file the Bankruptcy prior to the Sale, the sale will be stayed and you will have more time to complete the short sale. You must file prior to the sale.
Answered on Aug 25th, 2011 at 6:44 AM
judith runyon
The bankruptcy has to be filed no later than the 27th in order to stop the sale.
Answered on Aug 25th, 2011 at 6:43 AM
Generally, if you are using an attorney, they should be able to assist you with stopping the sale in time, once you have filed the bankruptcy.
Answered on Aug 25th, 2011 at 6:41 AM