QUESTION
What can be done on a motion to abandon real estate property?
Asked on Sep 06th, 2016 on Bankruptcy - New Jersey
More details to this question:
The chapter 7 trustee put my house up for sale. It's been on the market for just under 3 months. This last Friday, they dropped the price by $25,000. We've only had 5 or 6 showings in that time. I've been searching and searching and can't find anything relating to the amount of time. I need to give the trustee to try to market and sell my home before I can file a motion to abandon. I do have an attorney and he says 5-6 months. Obviously, I am a lay person and would not know any better, but does anyone have any idea? I feel like 3 months is plenty of time especially with them dropping the price of my house. Please I'm desperate! It sucks having an attorney you're working with that you just don't feel connected to. I know you can't win them all, but it would be nice to feel like we mattered to him.
5 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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There is no specified amount of time for the trustee to abandon property. The property should be abandoned if the property is a burden or if there is no equity. So if the property is free and clear of any mortgage and the trustee can be reasonably expected to get some funds from the sale - even $1,000 then the court is unlikely to compel the trustee to abandon the property.
Answered on Oct 12th, 2016 at 7:04 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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You might want to discharge this lawyer and retain one in whom you do have confidence. Except the two years within which the Trustee must act, there does not appear to be any binding law governing how long they must wait before abandoning property. I think 6 months is kind of reasonable. You can support your motion for abandonment, if and when you make it, by having an appraisal showing that there is no value to the estate in its likely sales price.
Answered on Sep 29th, 2016 at 6:39 PM
I think you are being unrealistic. If you had a chance to collect several thousands of dollars, would you give up and give this money away after only 3 months? I have known bankruptcy trustees to stay on a case for YEARS to make sure they sell property and distribute assets to debtors. Why do you expect the trustee to make a gift of property to you?
Answered on Sep 29th, 2016 at 6:39 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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In NJ, he is correct 5-6 months.
Answered on Sep 29th, 2016 at 11:07 AM
Bankruptcy Attorney serving Grand Rapids, MI
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David Andersen & Associates, PC
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You can file a motion to abandon but the trustee will probably object to it. You also would have to pay a fee for the motion to abandon. If the trustee can't sell the house then he/she will abandon on their own.
Answered on Sep 29th, 2016 at 11:07 AM