Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Thank you for giving me the opportunity to assist you. I encourage you to ask me for clarification, if you are not clear with my Answer.
Our bank agreed to a short sale on our home. We retreived a Real Estate Agent and all paper work was sent to lien holder.(over three months ago) We filed bankruptcy and it has been discharged. Our lien holder is now asking for a release of trustee on the property. Now that the Bankruptcy has been discharged does the bank still need this ?? We live in Colorado. I can't get any straight answers from the bank, and would like to proceed with the short sale as we have offers on the property that have been submitted to the bank..Thanks in advance...
Response: Is you bankruptcy cased closed? Kindly note that your bankruptcy case can stay open way after you have obtained a Discharge Order from the Court. If your bankruptcy case is still open, then the bank would need to file a Motion for Relief from the Automatic Stay and obtain permission from the Bankruptcy Court in order to proceed with the short-sale. On the other hand, if the bankruptcy case has been closed after the Discharge Order has been issued, then the bank does need the permission of the Bankruptcy Court or the Bankruptcy Trustee to proceed with the short-sale. If you have confirmed that your bankruptcy case has been closed by calling your bankruptcy attorney or the bankruptcy Court and the bank is still insisting on you getting permission from the Bankruptcy Trustee, then you would need to speak with the bank's Bankruptcy Unit in order to resolve the issue and proceed with the short-sale. The Bankruptcy Unit hopefully would explain to the Collections Department and/or Loss Mitigation Department that your bankruptcy case has been completed and thus you no longer need the permission of the Bankruptcy Court or the Bankruptcy Trustee in order to proceed with the short-sale.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).