Legal Question in Bankruptcy in Minnesota

Short Sale and Bankruptcy

I am actively filing for bankruptcy on all 3 mortgages. My husband is not willing to file. He has threatened to do a 'short sale' on the property. Will this affect my bankruptcy filing and will I still be able to file if he would sell the house?


Asked on 8/26/08, 4:29 pm

1 Answer from Attorneys
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: Short Sale and Bankruptcy

You can file whether or not the house is sold. It effects you in that if the house is sold before you file, you have to report the details of the sale on your bankruptcy schedules. You would want to make sure the house sells for fair market value in a bankruptcy situation to avoid problems arising. If it doesn't sell before you file, then it either cannot be sold until the bankruptcy is over, OR court permission is needed to allow the sale to happen. You should discuss this with your bankruptcy attorney.

If you are concerned about your husband not filing, you may want to have your bankruptcy attorney explain to him what will happen to him if you don't both file (debt wise).

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Answered on 8/27/08, 2:08 pm


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