How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ellen Your Own Question
Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
9968427
Type Your Bankruptcy Law Question Here...
Ellen is online now
A new question is answered every 9 seconds

A debtor filed Chapter 7 and received an order of discharge

This answer was rated:

A debtor filed Chapter 7 and received an order of discharge a month ago. At the time of filing bankruptcy, the debtor had a home that was in foreclosure. The home was listed in the bankruptcy schedules, notated as a surrender, and worth less than the mortgage owed. The debtor is now trying to do a short sale and, for some reason, is asking the attorney who handled his bankruptcy to file a motion to sell the home. It seems that with the bankruptcy discharge, the trustee would not be involved or concerned with the short sale, and that it is something the debtor would need to hash out with the mortgage company. Is it necessary to file a motion to sell here?
*This chat is not intended as legal advice. It is general information that may or may not apply to your situation and should not be relied upon.*

Hello,

My name is FiveStarLaw. Although I am a lawyer, my answers are information only and do not form an attorney/client relationship.

I will do my best to provide you with helpful information. If the information which I provide is not clear to you or does not fully answer your question, please ask me for clarification by using the reply button.

It is necessary to file a motion to sell with the bankruptcy court if the trustee did not "abandon" his interest in the property. Simply put when a trustee "abandons" a property it means that the trustee releases the property from the bankruptcy

The fact that a discharge was granted to the debtor, does not mean that the trustee has closed bankruptcy case. The trustee may liquidate assets for distribution to creditors well after the discharge has been entered

I think this is what you wanted to know. Please let me know if I have answered your question or whether you would like further information.
Customer: replied 5 years ago.

Thank you for responding. A couple of follow-up questions:


 


Does the motion to sell require the filing attorney to show up for a hearing or other court procedure?


 


How likely is it that a trustee/bankruptcy court would deny a motion to sell for a house that is underwater, in foreclosure, and that the debtor is trying to short sell?


I'm happy to answer your follow-up questions.


Does the motion to sell require the filing attorney to show up for a hearing or other court procedure?
Usually the trustee and the attorney would agree to an order permitting the sale. As an alternative you can call the trustee and asked him if he will "abandon" the property and thereby avoid the necessity of a court order


How likely is it that a trustee/bankruptcy court would deny a motion to sell for a house that is underwater, in foreclosure, and that the debtor is trying to short sell?
Since there is not any equity in the property, the trustee would typically be agreeable to abandon the property. This is something that likely can be agreed to with the trustee
Ellen and 2 other Bankruptcy Law Specialists are ready to help you