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Ask Ellen Your Own Question
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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If the seller of a property has just filed bankruptcy, can

Resolved Question:

If the seller of a property has just filed bankruptcy, can the Trustee in charge of the bankruptcy case give authorization to continue sales transaction on the property if the seller & lenders are in agreement?
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 8 years ago.

The seller has no authority to sell the property or to permit you to take any type of action absent the trustee's agreement. When an individual files bankruptcy, all the property of the individual becomes property of the bankruptcy estate. The trustee becomes the party in interest, not the debtor. The trustee takes over all contracts and can choose to perform or void the contract.
Customer: replied 8 years ago.
That I understand, but can the trustee agree to the transaction & take it out of the bankruptcy filing or make it part of the bankruptcy settlement? Do I need some kind of contract with the Trustee?
Expert:  Ellen replied 8 years ago.

You need to contact the trustee and have the trustee agree to the transaction. The trustee will need to obtain court approval which may be done with an agreed motion.
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