Legal Question in Bankruptcy in North Carolina

I live in Florida and declared bankruptcy in 2002. I turned over a piece of property in North Carolina, to a trustee here in Florida, and signed over the deed to her per request of the court. The tax office in Western North Carolina keeps sending me tax bill and say I am still the owner. What can I do?


Asked on 8/15/12, 3:33 pm

2 Answers from Attorneys

Charles Andersen Charles Andersen, Atty

Absolute Law Maybe the trustee never recorded the deed?

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Answered on 8/15/12, 7:06 pm
Thomas Zimmerman Zimmerman Law Office

In my experience it is unusual to deed property to a trustee. The trustee, in a Chapter 7, has the right to administer non-exempt property and will normally try to market the asset, typically through a realtor. Once a buyer is identified, the trustee will file a motion in court for approval for the sale and to give time for upset bids. What you relate tells me that the trustee did not record the deed. Perhaps he took a blank deed and intends to fill in the grantee upon sale. Still unusual as the trustee could sign the deed to a new owner with court approval. Of course, you remain legally responsible for the taxes as long as you are the record owner. The property is subject to the tax liability also and when it is sold, the purchaser will see that the taxes are caught up in order to obtain good title. The cure is built in for you. It is up to the county to conduct a tax sale and if it is sold that way, you and the trustee should get notice. It is the trustee's problem to advance the taxes if it is set for sale to prevent forfeiture. You should be able to check the status on line to see if any deed is recorded. You should inquire of the trustee. It should have been sold by now. Check to see if the bankruptcy case is closed. If so, the property is deemed abandoned and you remain the owner. In that event you could catch up the taxes and sell and pocket the revenue. Any bankruptcy lawyer in North Carolina could research and come up with the facts to determine the status and propose a plan to resolve the issue.

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Answered on 8/16/12, 7:03 am


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