QUESTION

On chapter 7, can the person filling, sell rental property to a relative (at a discounted price) prior to filling the claim?

Asked on Apr 25th, 2012 on Bankruptcy - Maryland
More details to this question:
Is there a chance the court could come back and take the property back?
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Bankruptcy Attorney serving Burbank, CA
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The debtor who filed the Chapter 7 case has no legal authority to sell any assets without the specific approval of the chapter 7 Trustee, or unless the Trustee has formally "abandoned" the property back to the debtor.  When a Chapter 7 case is filed, ownership of ALL assets of the debtor belong to the Trustee until the Trustee either gives the property back to the debtor (abandons it) or the case is closed. Mark J. Markus, Attorney at Law Handling exclusively bankruptcy law cases in California since 1991. http://www.bklaw.com/ bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/ Follow Me on Twitter:  @bklawr
Answered on Apr 26th, 2012 at 11:51 PM

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