Seller wants to co op a home that's part of a BK

[verbatim 1]

Woman filed bk in 07 and house was included. She says the bk will be "clear" in september but she's not even sure if she can sell it. Anyone crossed this bridge before?

 

Just curious?

[MichaelC 160]

What does she mean when she says the bankruptcy will "clear" in September? Best advice is for her to contact her attorney who handled her BK and ask what she can and cannot do.

[pilot76180 51]

Yeah...not sure about this one. My docs actually state the owner can't include the property into a BK.

From the cases I've seen, the house goes bye bye in a CH 7 if it's included.

A CH 13 is another beast...another post.....

[Skyland Properties 0]

Yeah...not sure about this one. My docs actually state the owner can't include the property into a BK.

From the cases I've seen, the house goes bye bye in a CH 7 if it's included.

A CH 13 is another beast...another post.....

 

In many states the owner gets to retain their homestead in a Ch 7, as long as there is not a significant amount equity (I'm pretty sure the threshold varies by state).

[randian 0]

Until the lender completes their foreclosure, the owner still owns the property post-discharge even if the BK filing indicates they're abandoning the property to the lender. Many debtors (and all too many BK lawyers, who should know better) mistakenly believe that after their BK discharge they no longer own the property. The problem for us is that the debtor has no right to sell the property until the trustee formally abandons it pre-discharge or discharge is granted without action by the trustee.

[Jonathan RexfordFL 8]

Sounds like to me it was a 13 and probably is a payout schedule of her homestead property via other debts. Once it is out of BK then she can do anything. Until then everything must go through the trustee now of course run everything by your attorney.