Legal Question in Bankruptcy in New York

sell house?

I was ready to close on a co-op in an adult community in new jersey july9 of this year.

the owner's son came in and said the

owner could not sell right away because he was in bankruptcy but that

he would let us take possession and

move our things in right away.

the coop management agreed to this

but did not return our $5000 + deposit.

we have moved in a few pieces of furniture and used the place to stay

for about 10 days.

what are our rights and responsibilities as of now. what are the rights and responsilities of the

co-op.and of the owner.


Asked on 7/28/03, 4:21 pm

1 Answer from Attorneys
Andrew Nitzberg Andrew Nitzberg & Associates

Re: sell house?

This is a difficult situation. When a person or a corporation files for bankruptcy two (2) things happen.

The first is that the creditors may not foreclose or seize any property. This is called the bankruptcy 'stay'. Therefore, no creditor will come to your door saying you don't own it, the creditor does.

The second is that the assets (like this property) become part of the bankruptcy estate and a Trustee is appointed to monitor and manage the estate. Property (like this coop) may not leave the estate without the approval of the Trustee.

So my answer is that you must work with the Trustee to approve the sale of the property (coop) to you.

This can be done. You are welcome to a consultation at no fee at my offices at 42 West 44th Street (near Times Square). Please call for an appointment first (646) 591-5786.

Read more
Answered on 7/28/03, 5:18 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in New York