Can you sell a house that is in a Chapter 7 bankruptcy? - Bankruptcy Law Questions and Answers- LawQA.com

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Can you sell a house that is in a Chapter 7 bankruptcy?

Can you sell my house with a short sales that's in a Chapter 7 bankruptcy?

Answer By Kevin Heupel
Heupel Law
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Yes, you can short sale your home in a Chapter 7, but need to file a motion to abandon so the bankruptcy court can issue an order permitting the sale of the home.

Answer Applies to: Colorado
Replied: 8/26/2011

Answer By Mengjun Qiu
The Law Offices of Kristy Qiu
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Creditors can't sale your house if you're in bankruptcy. You can't sell your house during your bankruptcy case unless the trustee specifically abandoned it and you intend to use the proceeds to purchase a new homestead. The trustee may or may not sell your house if you didn't claim it as homestead, depends on how much equity there is in the house.

Answer Applies to: Florida
Replied: 8/11/2011

Burnham & Associates
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Yes. Of the Trustee releases all interests in the property you can sell it at Short Sale during Chapter 7.

Answer Applies to: New Hampshire
Replied: 8/11/2011

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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You can if the trustee has "abandoned" it. Check with the trustee before you do anything like that.

Answer Applies to: California
Replied: 8/11/2011

Answer By Dan Wilson
Dan Wilson Bankruptcy
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Why would you want to a short sale? There is no benefit to you. I assume you are not trying to keep the house. Why not live there rent free until lender forecloses? Your question is not clear whether you have filed. If you have, your house is part of the bankruptcy estate which the trustee controls. You cannot dispose of property until you get your discharge of debts and the case is closed. I do not see any advantages to a short sale. In my humble opinion they are usually pushed by realtors, who don't know much about bankruptcy law, to get a commission. I am not saying there is no potential fact pattern where a short sale would benefit the debtor, I've just never seen one. Talk to the attorney who filed your bankruptcy.

Answer Applies to: Colorado
Replied: 8/11/2011

Theodore N. Stapleton, PC
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Yes if the chapter 7 trustee agrees to abandon the estate's interest in the house. I am happy to discuss these issues with you.

Answer Applies to: Georgia
Replied: 8/11/2011

Rhonda R. Werner Schultz, PL
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If the Trustee has abandoned the property during your Chapter 7 bankruptcy you have a right to sell it. It is typically wise to notify the trustee of the intention to short sale and ask if he or she has any objection to such sale.

Answer Applies to: Wisconsin
Replied: 8/11/2011

Law Office of Lynnmarie A. Johnson
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You have to have the court and the trustee's permission. Most won't give it because it is redundant, you already discharge the debt, why would you want to go through with a short sale?

Answer Applies to: Michigan
Replied: 8/11/2011

Answer By Ray Fisher
Ray Fisher Law Offices
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A house is never "in a bankruptcy." You file bankruptcy. A house cannot. Yes you can sell a house while you are in bankruptcy.

Answer Applies to: Texas
Replied: 8/11/2011

Answer By Alan D. Walton
Breckenridge and Walton
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As long as the trustee has no objection.

Answer Applies to: Michigan
Replied: 8/10/2011

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