Buying "subject to" & bankruptsy - Posted by Greg

Posted by John Merchant on November 07, 2002 at 13:04:25:

Bk, Chapter 7 discharges ALL debt, even unlisted debt, so I’d recommend you have your lawyer look over this deal before you agree to pay a dime.

To make sure that you are getting good title that cannot be attacked by other creditors who might feel aggrieved that they were left holding empty bag.

Other creditors could bring a complaint that the debtor/Bankrupt deliberately concealed his biggest asset, and the bankrupt debtor and any conspirators (like you might be alleged as such)could conceivably be prosecuted for fraud.

Don’t panic over this, because it would really have to be a huge fraud involving LOTS of money before that would happen, and I don’t even recall ever seeing a buyer like you named as criminal conspirator, but this is why you should involve your lawyer. To make sure of your position and safety.

Buying “subject to” & bankruptsy - Posted by Greg

Posted by Greg on November 07, 2002 at 12:17:46:

I have an agreement to purchse a propety “subject to” the existing mortgage. The sellers had a chapter 7 bankruptsy discharged in June this year and the property was not included. I am going to pay about $11k in back payments to reinstate the loan. Is there still any danger in this with the dicharged bankruptsy?