Q: 1 week away from closing. Title company won't move forward. House is already sold and buyer waiting.
We have the letter - from the Trustee: Chapter 7 Trustee's Report of No Distribution. Our Attorney states this is enough. Attorney is in car accident and on 3-week medical leave. Title company says the letter isn't enough but no real good explanation as to why. Maybe it's because the address isn't listed in the letter specifically. I can see no downside here; house is sold - debts are paid. New house in my name. They said something about wanting a letter or permission from the Judge to sell the house and yet the house is fully exempt. The amount of the sale is within the 500K boundary. The equity after the sale of the home w/ the 10% down is maybe $60K or less my parents net on selling the home they have lived in 15 years. House is already sold and buyer waiting. New house already signed on but 10% down comes from the proceeds (gift) of the sale of this existing home (my parents) who had to file chapter 7 but house is homestead and we have the Report of No Distribution.
A:
Title companies often screw up bankruptcy questions, but I think they're right here. Until the case is closed, the home remains property of the bankruptcy estate and isn't yours to sell. The Trustee's Report of No Distribution doesn't affect this. Maybe there's a different view on this topic on Texas that I'm not aware of, though.
One way to get this done quicker be be for the trustee to formally abandon the property. This needs to go out on notice so it might not be any quicker than waiting for the case to close.
Tammy L. Wincott agrees with this answer
A: You’re going to need the decree of discharge to be entered Before they close. Until the decree is granted, the property is part of the estate and not yet yours to sell.
Tammy L. Wincott agrees with this answer
A: Although the house is exempt right now, if the funds from the sale were not re-invested in another homestead within 6 months they would no longer be exempt and would be used to pay back creditors in the bankruptcy. The best thing to do is to get the Bankruptcy Court's permission to sell or wait until further down the road. You also haven't advised what the intentions were with the funds from the sale, i.e. buy another homestead, etc.
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