Re: Chap 13 and Sub 2 - Posted by B.L.Renfrow
Posted by B.L.Renfrow on July 02, 2003 at 15:02:26:
I am neither an accountant nor lawyer, but if the IRS has already filed a lien, they’re not likely to cancel it unless the debtor has other assets they can attach.
As for the BK, if it’s already filed the seller cannot deed you the property without permission from the trustee. If the BK has been dismissed they can do whatever they want. If they refile later in another state, as long as the payments are current, the lender is unlikely to care.
However, if they do refile, the trustee certainly can “look back” at any transaction in which the seller has engaged in a defined time period, which I think is a year, but might be more. Unless the trustee is suspicious they are trying to hide assets, it shouldn’t be a big issue, but you should be aware the trustee/court would have the power to set aside the sale if they determine there really is $30k equity and they want to go after it.
Probably the safest move from your perspective would be for the BK to be dismissed or withdrawn (if it’s already filed), and for the seller to work out a payment plan with the IRS rather than refiling BK. If they do refile, it would be better the longer they wait. If you refi within 6 months, I doubt you’re going to have a problem.