Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
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There is no Bankruptcy Code section that addresses the issue of under what circumstances a trustee can sell property belonging to a Bankruptcy filer. However, a Bankruptcy filing does not change the rights of secured creditors in relation to the property that is owned by a Bankruptcy filer.
If a lender has a mortgage on property, that mortgage must be paid in full before the property can be sold by anyone - including a Bankruptcy trustee.
If the property cannot be sold for at least as much as the mortgage(s) on that property, then no one, including a Bankrutpcy trustee, can sell the property.
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