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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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Although all my debts were discharged in August 2011 under

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Although all my debts were discharged in August 2011 under my Chapter 7 Filing, should I defer selling my rental properties and taking cash distribution from my 401K until the Trustee issues her final report to close the case?

cfortunato :

Hi JACustomer,

cfortunato :

Did the Bankruptcy trustee issue a notice that he or she was "abandoning" the rental properties?

Customer:

Yes, because they are protected assets / exempt from the bankruptcy estate via tenancy by the entireties ownership (my spouse did not file for bankruptcy).

cfortunato :

If the rental properties were "abandoned" by the trustee, you can go ahead and sell them before your Bankruptcy case is closed. However, until the case is closed, it is possible for the trustee to take any other assets that are no longer exempt - such as any money that you take out of your 401K.

cfortunato :

If the amount you want to take out is a small amount, that should not be a problem.

cfortunato :

I think this is what you wanted to know. If not, please let me know.
Thank you.

cfortunato and other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.

As a follow up to your above relpies, here are two questions:

 

1. Is this an acceptable note from my bankruptcy attorney authorizing the bank to communicate directly with me?

We have been retained to represent Art in a pending chapter 7 bankruptcy case. We enclose an additional copy of the notice of commencement of case. Art has received a bankruptcy discharge; however, the bankruptcy case has not been closed. We confirm Art's request that you communicate directly with him regarding secured claims of the Bank.

 

2. Regarding your earlier question: Did the Bankruptcy trustee issue a notice that he or she was "abandoning" the rental properties? Is it still required given that I claimed an exemption for my interest in unit 203 and unit 207. There was no objection to the claim of exemption?

 

I don't know how you will be compensated, but I can always add a bonus.

 

Thank you.

a

1) Yes - that is an acceptable note.

2) It is customary for the Bankruptcy trustee to issue a notice of abandonment for any of the debtor's property that he does not want to take, or that he cannot take -even if the trustee cannot take the property because it is exempt.

cfortunato and other Bankruptcy Law Specialists are ready to help you