Posted by John Merchant on August 29, 2005 at 09:26:17:
While you could likely go online and find your BK court and its filings, and there find an Order of Dismissal (and the Motion that lead to the Order)…you might want to rethink this.
First, the damage to the debtor’s credit has been done and that’s not going to be automatically undone by a dismissal. A friend of mine did this after having his ID stolen and some fraudulent notes signed in his name, against his free & clear RE. He felt he had to fo the filing to stop a pending foreclosure action, but has since suffered from the immediate and automatic bad credit reports that followed. It’s been months now and he still hasn’t got it all undone.
Secondly, you might benefit from having the BK Court or Trustee enter a finding that your offer is of benefit to the “estate” of the BK and should therefore be approved.
This would certainly be true if you, the outside buyer, were doing a purchase with simo L/O back to the homeowner…as otherwise your deal might be later subject to attack by the HO as an illegally usurious loan in excess of your state’s home loan interest cap.
But the same deal done with the blessing of the BK trustee is then bulletproof as NO other court, save a Fed court in your jurisdiction, could collaterally attack the finding and order of the Fed BK Court and its trustee.
Another thought on the dismissal…if there are other creditors, they’d have to be “noticed” and given a chance to contest the Motion to Dismiss.