Bankruptcy Ch 7 and 13???

Have a potential Short sale situation however the owner filed ch 13 and then changed it to ch 7. The loan is VA with a balance of $98K and ARV of $135K. No junior liens.
Isn’t there something that can still be done even though they filed bankruptcy? The home is set for public auction on Nov 1st and I want to help these people. Plus I think VA takes less of a short sale than conventional…been told around 82%. Not sure if that applies when there are no junior liens and filing bankruptcy. Any and all help is much appreciated. Need to act fast on this one. Thanks! Sheila

Hi
If you dont want to wait around for the bankruptcy to complete. You can always file a notice of abandonment with the trustee. There is still a 15 day period waiting period for someone to object to it.
steve

[quote author=kikaider69 link=topic=32300.msg150019#msg150019 date=1192801454
If you dont want to wait around for the bankruptcy to complete. You can always file a notice of abandonment with the trustee. There is still a 15 day period waiting period for someone to object to it.
steve
[/quote]
Steve,

Not sure I understand what you mean…can you please explain when you have some time. thanks! sheila

The trustee has a duty to get the best price. You will need to prove your short sale number is more than the price at auction. BK isn’t about helping the debtor. It’s about making sure creditors get paid.