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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 37844
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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I have a house worth 1.4Mil and I owe the bank 1.3Mil I was

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I have a house worth 1.4Mil and I owe the bank 1.3Mil I was going to go for a chapter 11, then the bank considered a short sale and would release me from any deficiency, they also got a summary judgement for the 1.3M. Now the bank is saying they will not release me from the deficiency, and if i agree the short sale for 900k I will owe 400k. My question is if I go for a chapter 11 now after a summary judgement can the bank still foreclose on the house, or can I manage the sale under the bankruptcy, as I believe I can sell it and not have a loss, and so clear my debt.

Since a Florida property owner has a right to redemption which remains available after final judgment of foreclosure until the time that the court clerk files the certificate of sale (FL Stat. 45.0315), and assuming that you could confirm a Chapter 11 plan which would permit you to pay off the property mortgage, then that plan would permit you to avoid the foreclosure sale and save the property -- because the bankruptcy estate is composed of all of the debtor's legal and equitable interests in the debtor's property as of the date of filing of the bankruptcy petition. Bankr. Code 541(a)(1).

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