If someone files chapter 7 to avoid foreclosure, how does that affect the property?
Scenario
Potential foreclosure two loan 80/20
client files chapter 7
no foreclosure, but properties are in chapter 7
can these still be negotiated with the lender? Who has ownership or control of the properties after chapter 7.
Any advice would be great
Thanks
Jaz
When you file for bankruptcy any debt that is secured is not included. That means that you still get foreclosed on and they get your house. When you file for bankruptcy you need to pay your mortgage, notes on tools and equipment as well as your car note or they will get taken back.
And this also means the owner has rights to sell the home (or any other secured items)? Does the court need to approve the sale?
In a chapter 7, you need to send to the trustee, a notice of abandonement. Once he signs it, you can short it. hope that helps you.
steve