My understanding is that if the property is in a confirmed plan, it cannot be disposed of by the debtor without leave from the court.
If the owner is not in a confirmed plan yet or is simply stalling using bankruptcy as a delaying technique then I believe that as long as the lender is not disadvantaged by the transaction, you'll be good to go!
YourPropertyFinder's advice is not correct. Upon filing of any bankruptcy petition, Chapter 7 or 13, there is an automatic stay. From that point forward until discharge, all property of the debtor is included in the estate, for which the trustee is responsible, until relief from the stay is granted, property is abandoned, the property is excepted or exempted.
Follow the above advice and contact your attorney.[ Edited by jhgraves on Date 09/24/2003 ]
Martman,
A property will not stay in bankruptcy for years, or even a year outside of a 13. The bank is not an unsecured lender who takes whatever is left over. The bank's promissory note is secured by the mortgage on the property. They are a secured priority party. They can seek relief from a stay and foreclose.
Unless the property has been taken out of the bankruptcy estate you'll have to get approval from the trustee in order to affirm any previous contract entered into between yourself and the debtor.
Contact the Bankruptcy attourney for discharge procedures.
hmmm......a good question!
My understanding is that if the property is in a confirmed plan, it cannot be disposed of by the debtor without leave from the court.
If the owner is not in a confirmed plan yet or is simply stalling using bankruptcy as a delaying technique then I believe that as long as the lender is not disadvantaged by the transaction, you'll be good to go!
Good luck & keep up posted!!!
How many years can someone keep the property in the bankruptcy?
Is there no way for the bank to foreclose for non-payment or the county to auction for back taxes during the bankruptcy?
YourPropertyFinder's advice is not correct. Upon filing of any bankruptcy petition, Chapter 7 or 13, there is an automatic stay. From that point forward until discharge, all property of the debtor is included in the estate, for which the trustee is responsible, until relief from the stay is granted, property is abandoned, the property is excepted or exempted.
Follow the above advice and contact your attorney.[ Edited by jhgraves on Date 09/24/2003 ]
LOL @ alubeck's post....
Rubbish.
Martman,
A property will not stay in bankruptcy for years, or even a year outside of a 13. The bank is not an unsecured lender who takes whatever is left over. The bank's promissory note is secured by the mortgage on the property. They are a secured priority party. They can seek relief from a stay and foreclose.
Unless the property has been taken out of the bankruptcy estate you'll have to get approval from the trustee in order to affirm any previous contract entered into between yourself and the debtor.