My dad is waiting for his bankruptcy to be discharged. He was advised by the attorney that it should be by the end of Feb. Dad decided to sell his house and is closing on the sale in a few weeks hoping he'll have the discharge by then. I have warned him that he should wait, but is not listening. Thinks the discharge is only a formality and does not think any creditors will come after money. Does anyone know how this will work? What if he sells and does not get the discharge right away? We are afraid he'll lose a bunch of his proceeds from the sale.
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Bankruptcy discharge question
- Thread starter KSwin
- Start date
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Wait for others to post an answer but you should tell your father to talk to his attorney prior to closing on the house. Someone else will correct me if I am wrong but I think whether he sells the house before or after the discharge would not matter. If the profit he makes is great, it will have to be surrendered to the bankrucptcy court, again, I am not sure on this so wait for others to post.
Oh, we live in Florida, don't know if that matters or not. I am pretty sure once he has the discharge he can do as he pleases. I am concerned that he is jumping the gun though. I do know that his BK attny told him the deadline for the creditors to makes claims was the end of January. I don't know if that means he's ok to sell now or not.
Wait for the case to be closed, not merely discharged. Every title company I have dealt with requires either and order closing the case, or an order allowing the sale of the property before they will complete a sale transaction.
If he really needs to sell the house, he can file a motion to allow the sale free and clear of liens under section 363 of the Code. We also file those motions on an emergency basis and can usually ramrod them through in 10-20 days, so it isn't a great impediment to file the motion.
If he really needs to sell the house, he can file a motion to allow the sale free and clear of liens under section 363 of the Code. We also file those motions on an emergency basis and can usually ramrod them through in 10-20 days, so it isn't a great impediment to file the motion.