Legal Question in Bankruptcy in Utah

How can I reclaim the property--it's in limbo

Certain unscheduled property was administered properly and the case was validly closed, therefore the property is no longer part of the estate, that is the Bankruptcy Court no longer has jurisdiction over it. However, the buyer is nonexistent--it was a corporation that was defunct and dissolved--a non-entity. Hence, the property was sold to no one. The result: the property belows to no one. It is in a black hole. The buyer doesn't legally exist, and the Bankruptcy Court legally gave away its claim to the property by properly administering it and closing the case.

The question: Should I just claim it and if he sues me a Court can decide? He probably will not challenge it, because he has unclean hands and he got what he wanted. He has disqualified me from suing him for the defective intangible property by paying the bankruptcy court a lot of money for it.

But, what I am afraid of it is that the property was basically and unwittingly put into permanent limbo, and I don't know how to reclaim it.

Is there a provision anywhere in law that could help me?


Asked on 2/17/05, 7:13 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: How can I reclaim the property--it's in limbo

Your facts are unclear and somewhat inconsistent. Apparently someone purchased the property from the Bankruptcy court. If so, that person (or company) owns the property. Even if the buyer was a defunct corporation, that could be cleared up. There is something called a defacto corporation, which means an entity which for some reason is not a valid corporation, but acts like one. Defacto corporations can usually continue to act. If you have some sort of interest in the property, check with the bankruptcy court to see what happened to the property. If it was not properly declared to the court, the trustee can still take possession. If it has been sold, then there is a new owner. You cannot take propery in which you do not have a valid interest - that is a crime.

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Answered on 2/17/05, 9:17 pm


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