Legal Question in Bankruptcy in California
property tax lien sale
Have received Notice of Sale of Tax-Defaulted Property regarding my home to occur March 12, 2007.
General question: Would filing for Bankruptcy put a hold on this action so I can proceed to sell my property (home) in an orderly way?
Otherwise I don't think I can close a deal in time inorder to receive funds that I need to put a stop to a sale at auction in March.
I am single, 56, and appear to meet Chapter 7 requirements.
1 Answer from Attorneys
Re: property tax lien sale
Filing for Chapter 7 could be a double-edged sword for you. Once you file for any type of bankruptcy, the automatic stay will temporarily stop all actions to collect debts from you. You might be able to obtain a significant delay. But you may lose control over your ability to sell the house on your own.
You would need court permission to sell the house while the bankruptcy was pending. If you had a lot of equity in the house, you might find that the Chapter 7 trustee will be selling your house for the benefit of creditors instead of you.
You need to consult a qualified bankruptcy attorney right away. The decision to file bankruptcy and what type of bankruptcy to file can only be maded after a detailed review of your circumstances.