QUESTION
What can we do if the seller has filed for Chapter 11? How?
Asked on Jun 11th, 2015 on Bankruptcy - Michigan
More details to this question:
My husband and I are acquiring a short sale property and the bank approved the sale price. However, the seller filed Chapter 11 bankruptcy. What options do we have?
6 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Probably, there will simply be a month or so delay in the sale. However, you will need to consult a bankruptcy attorney to take you through the process.
Answered on Jun 15th, 2015 at 3:23 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Contact the seller's Ch. 11 lawyer and tell him or her that the deal has been made, and you would like to see the sale take place. It is possible to move the Court for Relief from Stayi.e. permission to go ahead and do something otherwise prohibited by the bankruptcy stay. It would probably be the present mortgage-lender who would file the motion.
Answered on Jun 11th, 2015 at 5:03 PM
Talk to the Sellers' attorney and see what their intentions are with regard to the property. This area of the law is very technical. You will need to pay an experienced Chapter 11 lawyer for their time to see what rights you have.
Answered on Jun 11th, 2015 at 4:22 PM
The seller will need court permission to sell. You should have an attorney representing you to make sure that the sale is allowed to go forward.
Answered on Jun 11th, 2015 at 12:36 PM
The BK should not necessarily impact the sale since by definition, the short sale gives seller no proceeds.. Confirm that seller intends to complete the sale.
Answered on Jun 11th, 2015 at 12:30 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Your best option would be to see an attorney as there is a possibility that the transaction should, or may be allowed to go forward if the seller agrees regardless of their filing bankruptcy.
Answered on Jun 11th, 2015 at 11:47 AM