QUESTION
Can a newly filed bankruptcy supersede an order by a Judge to sell a former marital estate?
Asked on May 01st, 2013 on Divorce - North Carolina
More details to this question:
My ex-husband was ordered by the court to put the former marital estate up for sale, 120 days after the court appearance in Jan. 2013. Two weeks before the 120 days is due to expire, he files (or is in the process of filing) for bankruptcy. Will the bankruptcy filing overrule the current order in place? What is my recourse to protect myself as my name is still on the mortgage that he was previously given 120 days to sell? Our divorce was granted in 2009. Since then he was awarded the house and when he failed to make timely payments, the judge ordered him to sell the home. To prevent taking a loss, he decides to fill bankruptcy.
1 ANSWER
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All actions against a debtor's property are stayed during a bankruptcy. However, a party can be permitted to proceed in state court for "cause". "Cause" can be just about anything, but usually occurs when the debtor is not making mortgage payments. In this very unique case, the bankruptcy court could agree that cause exists to allow the divorce court to proceed.
Answered on May 02nd, 2013 at 11:04 AM