coming out of a CH.7 - Posted by Jason

Posted by Neill on October 08, 2003 at 15:29:41:

Call the nearest Federal Bankruptcy Court. Get the name and phone # of the trustee for his case. Call the trustee and find out what the deal is. They’ll tell you. If the BK7 has been discharged, it probably won’t be a problem.

coming out of a CH.7 - Posted by Jason

Posted by Jason on October 08, 2003 at 10:47:36:

I have seller who is going into foreclosure. He says that he was unaware of the foreclosure on the property and that he thought the property was taken care of with the chap 7 bk. Now he is surprised of this foreclosure. He says the chap 7 is “done” and over. I asked what his bk attorney said about this and he said that there was equity in the home and that he could get it if he sold it. What does everyone think is going on here? I thought that iin a ch 7 bk if the property is included, isn’t it sold to pay off the debt?


Re: coming out of a CH.7 - Posted by Clare Z

Posted by Clare Z on October 08, 2003 at 20:55:02:

Homes are listed in a bankruptcy, but not discharged. So, his loan never stopped being owed.

Opportunity Meter is Flashing here… - Posted by JT-IN

Posted by JT-IN on October 08, 2003 at 11:43:06:


A Bk does not eliminate ownership of property, unless the Trustee orders the property sold, which they apparently did not in this case. The Trustee would have released the asset from the control of the Bk court, in which case the owner is free to sell the property.

You, or someone with experience here, could agree to purchase this property at an agreed upon price. In a case such as this where the owner really has no real idea that they own it, or has planned on selling at a profit, the opportunity is wide open to acquire the property for meerly payoff, or slightly higher. Hopefully this leaves some equity in the property for the investor… It is as simply as that, really… cut a deal and close it, rent or resell at a profit.


Re: coming out of a CH.7 - Posted by Clark

Posted by Clark on October 08, 2003 at 11:27:37:


Having experienced a Ch.7 myself and including my property; the answer to your question is “No”, the property is not sold to pay off the debt. The owner can list the property themselves or with a realtor ONLY to keep a foreclosure from showing up on their credit report along with the Chapter 7 OR they can just walk away and let the mortgage company foreclose. In my case, there was no equity in the property and the mortgage company was willing to do a short sale so I was able to list it with a realtor, and sale the property.

I hope this helped.