Legal Question in Bankruptcy in Utah

is it legal to sell a loan that i filed bankruptcy on?


Asked on 2/16/12, 3:08 pm

1 Answer from Attorneys

Linda Smith Linda D. Smith P.C.

This depends on what Chapter bankruptcy you filed and whether you declared the loan in your bankrtuptcy schedules. If you listed the loan as an asset in a Chapter 7 bankruptcy and the Trustee did not indicate an interest in collecting the loan for the benefit of your creditors then you might ascertain from that the Trustee effectively abandoned his/her interest. (Most Trustees explain that they will abandon their interest in any asset they deem inconsequential to the estate without further notice to creditors, at the 341 hearing). If you filed a Chapter 13 and you listed the loan as an asset then your plan should have included the value of the loan as an amount due in your POT to unsecured creditors "in the best interest of your creditors". Assuming you had an attorney handle your bankruptcy and all of these issues were addressed you may have received your discharge still owning the loan as an asset, in which case after you received your discharge you would be free to dispose of it as you felt necessary.

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Answered on 2/09/13, 7:29 pm


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