Legal Question in Bankruptcy in California

How can you stop a Bankruptcy filing before the court date

I was advised that I could sell my home during Bankruptcy proceeding, this is before the court date was set. Now I at the end of my escrow, the escrow company can not complete the sell of my property. My home had been homesteaded..

So that should protect some of the money..What can do to stop the bankruptcy or have the courts to quickly release the property to complete the sale. The bankruptcy was file after the escrow had started. What can I do now..

Thanks


Asked on 3/18/03, 2:51 pm

1 Answer from Attorneys
Robert Miller Robert L. Miller & Associates, A Law Corporation

Re: How can you stop a Bankruptcy filing before the court date

Thanks for your inquiry. Unfortunately, without knowing what TYPE of bankruptcy, it's difficult to state the answer to your question.

For a Chapter 7, you can only dismiss with the permission of the trustee, which is impossible to get. With a letter from the trustee agreeing to release the funds, you may be able to present to the escrow company what they need to release the funds, if they are entirely exempt.

With a Chapter 13, the situation is a little different. The trustee in a Chapter 13 has all control over money flowing in, and may seize the entire amount to pay creditors. You may be able to dismiss a Chapter 13, voluntarily or by inaction, however, depending upon what stage you are at.

I hope this helps, and best of luck.

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Answered on 3/18/03, 4:36 pm


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