Legal Question in Bankruptcy in New York

selling house

if you are in the process of filing for bankruptcy and someone offers to purchase your home for what you owe on the house, are you allowed to sell your home without getting the courts involved and treat this as a private deal?


Asked on 8/25/03, 10:17 pm

2 Answers from Attorneys
Eric Kochel The Law Office of Eric David Kochel, Esq., P.C.

Re: selling house

The answwer is "NO". If you have filed for bankruptcy the judge and trustee must approve the sale of your home. Generally this just a "rubber stamping" procedure and goes through easily. Your creditors do have there rights however to the proceeds of the sale depending on the situation. I don't know enough details of your case to be specific. Ask your attorney or call (917) 257-3341 for further information if you do not currently have an attorney.

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Answered on 8/27/03, 4:05 pm
Andrew Nitzberg Andrew Nitzberg & Associates

Re: selling house

Bankruptcy is always difficult. In this situation, the set-asides (legal exemptions) are intended to help you with this problem. Selling the house privately is considered a "self-help remedy" and is prohibited by law.

You may sell the house, but if you file for CH7 afterwards within the reporting time limit, you must report the sale. The court will have the power to set aside (revoke) the sale as a technique to insulate/shield assets outside the law.

The best thing to do is to work with your lawyer with the exemptions or plan ahead for a long period of time, longer than the statutory reporting period.

You are welcome to a consultation at no fee at my offices at 42 west 44th st., NY,NY. Please call for an appointment first. (646) 591-5786

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Answered on 8/27/03, 11:05 pm


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