Question to HG, SJ, or IAAL

[Samm1970]

What is the name of your state? MN

I'm the lender in the following scenario.

Seller files bankruptcy after purchase agreement is signed with buyer. Bankruptcy won't be released (Realtors words, I'm assuming he meant discharged) until December. Loan was suppose to close today but didn't. Seller needs approval from bankruptcy trustee.

Buyers agent is concerned sellers and sellers agent are not being forthright. Is it possible to get trustee approval for the sale of a home prior to discharge? Does the type of filing make a difference, 13 or 7?

I'd provide more details but that's all I know. So I'm really just trying to ascertain whether it's possible to get approval or if approval is not usually provided until after the release/discharge.

Thanks for any education you can offer.

 

[seniorjudge]

Q: Is it possible to get trustee approval for the sale of a home prior to discharge?

A: Yes, at least under the old law. I haven't the foggiest under the new law. When the bankrupt file? If it was before 17 Oct 05, then the answer is definitely yes.

 

[Samm1970]

Thanks SJ. I appreciate your time.

I relayed this to the agent and the buyer and it sounds like they don't want to press it. Buyer still lives in her home and hasn't listed it yet so not enough motivation to sue for performance. Even if they did, I spose there's a chance the trustee would not approve the sale in which case, the performance suit would be pointless. Do you agree?

 

[seniorjudge]

Thanks SJ. I appreciate your time.

I relayed this to the agent and the buyer and it sounds like they don't want to press it. Buyer still lives in her home and hasn't listed it yet so not enough motivation to sue for performance. Even if they did, I spose there's a chance the trustee would not approve the sale in which case, the performance suit would be pointless. Do you agree?

Specific performance is pointless....