MAY I SELL MY PROPERTY WHILE I AM IN BANKRUPTCY?

MAY I SELL MY PROPERTY WHILE I AM IN BANKRUPTCY?

First, we must determine what is property?  Property is anything that a debtor owns whether real, personal or of whatever kind and nature.  Everything is property, not just houses and land.

The selling of property by a debtor is determined by what type of bankruptcy case youhave filed.  When a case is filed, a bankruptcy estate is established.  A debtor’s right to sell assets of the bankruptcy estate is determined by several factors.

If you file a Chapter 7 case, the Trustee in your case will abandon most of the assets at the 341 hearing.  If the assets are abandoned, you may sell those assets without further Order or permission of the Bankruptcy Court.

Oftentimes, at the 341 hearing, the Chapter 7 Trustee will declare some of the property of the debtor as having sufficient value that the Trustee wants to take a further look at the property. Although other property will be abandoned and no longer property of the Bankruptcy Estate, the Trustee will investigate the property not abandoned and make a determination if the property is worth selling so that property can be sold and the proceeds distributed among your creditors.

If, after further examination the Trustee determines that the property cannot be sold so that there will be money for the creditors of the debtor, then the Trustee will abandon the property and the debtor is free to sell the property abandoned.

In Chapter 11, 12 and 13 cases, the debtor may sell property only as approved by the Court.  A motion to sell must be made and the property can only be sold with the approval of the Court.

 

About Nathan Davis, Esquire

Born in Charleston, South Carolina, Nathan Davis has been practicing law for many years. Mr. Davis has a wide variety of experiences having practiced domestic relations, criminal law, social security law having also practiced collection law in the past. This knowledge is helpful when someone needs to restart their financial life. The practice is now primarily bankruptcy and debtor representation work, but, Mr. Davis continues to also practice real estate law, trusts and estates and a general litigation practice. I believe that the most important part of representation is trying to leave you better off when the case is finished than when you started. Although I will do as my client directs, I will always tell you if I think that you are making a mistake. Bankruptcy is about a "fresh start". If you do not make changes in what you are doing, you will be doing what you are doing now in the future. There is no shame in bankruptcy or other steps that you may take to start your life over. Too often, people worry more about things than about themselves, their family or their future.
This entry was posted in GENERAL INFORMATION. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *