Posted by JohnBoy on January 22, 2001 at 19:09:28:
Maybe so, but then they would need to wait at least a year before refiling again to avoid the court from turning over any sales on their assets made within the past 12 months prior to filing. On the other hand, if they can prove to the court that the asset had no equity to speak of after satisfying the secured creditor then they might not have to worry about it.
take “subject to” during banckruptcy? - Posted by cheryl
Posted by cheryl on January 22, 2001 at 02:09:11:
i need some good advice asap…i have a signed contract to take property subject to and the owners already told me that they filed chapter 13{texas} 8 months ago and they made an agreement with the mortgage to make regular payments and the “arrears” would be added to the back of the note…they have not been able to make the payments since then, so they are behind again and just received a demand letter…i tried to get reinstatement figures from the attorney that sent the demand letter (i have letter of authorization} but the attorney states that the owners lawyer for the banckruptcy 8 months ago has to request the reinstatement figures because the bankruptcy has not been dismissed…i need to know when the chapter 13 gets dismissed in texas and if i could get into any trouble taking subject to during all of this and also, would it be better to just wait until bankruptcy is up, or could the mortgage co foreclose and all would be lost…please…i need to know right away…thank you…cheryl
CAUTION! - Posted by Chicago Steve
Posted by Chicago Steve on January 22, 2001 at 22:05:22:
NOTICE: I’m not an attorney or accountant or any one else whos opinion you should rely upon! That said, my understanding of the BK situation is the seller’s signature isn’t worth the ink it’s printed with and that anything signed without the courts approval is subject to reversal by the court. So consider…anything signed by a seller in BK may be overturned by the BK judge INCLUDING a deed… if a creditor were to complain there was equity in the property the creditors were entitled to.
ALSO note: I’ve had BK attorneys tell me there should be no issue with the court or creditors since the deal represents debt reduction/relief and the lendor is actually getting paid.
There’s my $.02 worth. Hope it helps.
Re: take - Posted by JohnBoy
Posted by JohnBoy on January 22, 2001 at 02:26:09:
I think chapter 13’s are set up on 5 year repayment plans before they are dismissed. The sellers may also need to get court approval before they can just let go of any assets. Their plan may have exclusions on what they can and cannot sell. You need to get with the sellers BK attorney to see what all you can and can’t do on this before doing anything.
The problem is, if they need court approval to let the house go, then the BK court can over turn the sale and take it back. You don’t need those kinds of problems. Get with the sellers BK attorney and get the facts before doing anything.
Re: take - Posted by Jim Locker
Posted by Jim Locker on January 22, 2001 at 18:41:20:
If I am not mistaken, a person can also take himself out of chapter 13 bankruptcy at any time. I can’t tell you the rules pertaining to this, but I have encountered it.