Toms River, NJ asked in Bankruptcy for New Jersey

Q: Do current court orders have to be carried out when someone files chapter 13

I have a court order forcing the sale of my condo. My co owner, who holds the mortgage was taking my mortgage checks and not paying my mortgage which resulted in forclosure proceedings. The mortgage commitment clearly states that partial payments could be made. He could have applied my half of the mortgage but didn't. To protect myself I moved out of my home and started court proceedings to force the sale and dissolve the partnership. He has not complied with any of the orders that were imposed since the suit started. A valid offer to buy the property finally came in, he refused to sign the contract despite court order and filed bankruptcy the next day. I don't understand how this could happen with a court order in place.

I've been going through this for over a year and a half. I definitely wasn't expecting this to happen now. He also lied on his bankruptcy forms and is not filing in the state where he resides.

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4 Lawyer Answers
Michael David Siegel
Michael David Siegel
Answered
  • Bankruptcy Lawyer
  • New York, NY
  • Licensed in New Jersey

A: Call the trustee. This could be the break you are looking for. The trustee can sell the property.

Karra Kingston
Karra Kingston
Answered
  • Bankruptcy Lawyer
  • Staten Island , NY

A: You should attend the 341 hearing or speak with the trustee let them know your concerns.

Leonard R. Boyer
Leonard R. Boyer
Answered
  • Bankruptcy Lawyer
  • Clifton, NJ
  • Licensed in New Jersey

A: In order to proceed with a State Court proceeding, you will need to retain an experienced bankruptcy and mortgage foreclosure defense attorney. Then a motion for relief from the automatic stay can be filed. Once someone files for bankruptcy, all civil lawsuits are automatically stopped under Section 362 of the U.S.B.C. But the stay is not absolute. In addition, if you can prove by a preponderance of the evidence that he filed bankruptcy in a state, which did not have proper jurisdiction, then he could be found guilty of bankruptcy fraud and denied a discharge and possibly receive a visit from some employees of the F.B.I.

Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: You should speak with the trustee, who can sell the property, and I would consult a debtors rights attorney to navigate the bankruptcy proceedings for you.

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