what if seller files bankruptcy?

I have a deal that I am working on where the owner is going to lose her house in a month to sheriff sale. She has about $50,000 in equity and I plan on bringing the amounts current and continuing to make the payments while I am trying to sell it. I am giving her $10,000 of the equity once I sell it. I am also planning on putting the property in a trust. My question is what if she files bankruptcy? Should I just pay the loan off, so this can’t happen or is there a way around it?

This is always a risk with sub2 transactions. Talk to her and ask her if she is planning on filing for a bankruptcy and if she is, not to include the mortgage in the bankruptcy.