Sub2 and Ch 13 - Posted by stan

Posted by JT-IN on December 28, 2004 at 14:33:10:

mw:

The Court is under NO obligation to honor any such request by the Debtor…

Now, from a practical sense, the Court doesn’t make it a practice of forcing anyone to finish a BK… Whether or not you could withdraw the Bk within 30 days, I wouldn’t be so sure about that… It may be more a process of letting the court dismiss the case for lack of Debtor participation, which may take 60 dyas, if you didn’t respond.

Just keep inmind that once a Bk is filed, the Debtor is really at the mercy of the court, as they have placed all their assets in the conservatorship of the Trustee. If for any reason they decided not to let go, one would be at their mercy…

JT-IN

Sub2 and Ch 13 - Posted by stan

Posted by stan on December 27, 2004 at 11:41:15:

Any knowledge out their regarding any pitfalls with buying sub2 with a person in ch13?

Yes, Don’t do it… - Posted by JT-IN

Posted by JT-IN on December 27, 2004 at 14:17:22:

without consent of the Bk Trustee. Anything short of that will invalidate the conveyance…

When a person is in an active Bk, all of their assets are within the Bk estate. The Bk estate is controlled by the Trustee, for the benefit of all the Creditors of the Debtor. If you are negotiating with the Debtor, you are talking to the wrong party. The Debtor cannot sell what is part of the Bk estate, unless the lawful party entrusted with the care of the assets sanctions that transaction… That is the Trustee.

Any Deed conveyed by a party in Bk, must beigned by the Grantor, (seller) and the Bk Trustee, for a valid conveyance.

JT-IN

Re: Yes, Don’t do it… - Posted by David Alexander

Posted by David Alexander on December 27, 2004 at 17:17:50:

We have found that pretty easy to do… the bankruptcy trustee will usually let a property out of the bk… especially if someone is willing to bring it current…

We’ve also, done a few where we just took over… anyway… didn’t catch up the back payments… that are already in the BK… with the agreement that the payor… still pay what they have to the trustee…

What usually happens is 6 months… to a year down the line… the payor quits paying and you have to catch up the arreage anyway… as the stay gets lifted…

You can also, wait until the stay is lifted… create a deed from that point… and then catch everything up…

Basically if the house payments are current… it’s like it isnt the bk… unless it were up for liquidation…

David Alexander

Re: Yes, Don’t do it… - Posted by JT-IN

Posted by JT-IN on December 27, 2004 at 20:41:39:

I completely agree David… However, I can’t imagine explaining to someone who doesn’t know that you can’t just take a property subject to when the owner is in Bk, and what the real and complete ramifications of doing so are… until they understand that there is NO such things as almost doing this right… Proceedurally, this is a landmine if each step isn’t followed to the T… and obtaining a Deed signed by the Trustee is imperative, unless you know that the Ch 13 is going to fall out…

I agree that the amount of equity that a Trustee will require to maintain an interest in liquidating the property for other Creditors is a considerably different amount of equity than interests most investors… Therfore, if approached correctly, most Trustees will sign off and convey the property without issue, and in fact, be gald to be rid of it from the Bk Estate. But this is a whole another subject matter to provide details on, as opposed the original question asked…

Hope all is well with you in Tx, David…

JT-IN

CA ch13 emergency filing question - Posted by mwr-ca

Posted by mwr-ca on December 28, 2004 at 13:46:27:

JT-IN and Dave Alexander- You both sound knowledgable about BK and subject 2. I am in So.Cal. Question for you on a deal I have working.

An owner-in-foreclosure filed an emergency Ch13 BK on 12-16-04 to stall the trustee sale. Does the owner have 30 days with which to withdraw the emergency Ch13 filing that would then give him the control of the property to sell subject 2?

MWR-CA

Re: Yes, Don’t do it… - Posted by David Alexander

Posted by David Alexander on December 27, 2004 at 21:38:31:

Your right about that…

So, were back to…

Yes… don’t do it…

Lol…

Things are well… Looking forward to the new year…

Hope all is well with you and your as well…

David Alexander

ch13 - Posted by Nike

Posted by Nike on December 28, 2004 at 15:10:02:

The owner/debtor may bring a motion to dismiss. A ch.13 is a repayment plan–the court treats the assets differently than under a ch.7 liquidation. Is this the owner/debtor’s residence? You may want to discuss your plan with the owner-- if he’s interested you should talk to the owner’s bk. attorney (with the owner present) and workout a deal.