Q: I'm a buyer and the seller filed for chapter 7. We were to close, now pending court decision. What are my options?
I am a buyer, went into contract with seller. We were to close but seller's went to court for bankruptcy. Is there anything I can do? What are some options that I can guarantee buying the home?
A: You need to hire an attorney to represent you in the bankruptcy case. You can probably still buy the property from the trustee, but the trustee is who you have to deal with from this point forward.
Mr. Denison is correct.
Find a lawyer who does real property and bankruptcy and have him contact the trustee. The Debtor should have listed the sale of the property under the appropriate category in his petition showing a contract yet to be performed.
A: Your pending contract is called an "executory contract" in that it is not complete. Debtors have the option to assume or reject executory contracts. You should have been listed in the schedule G, along with the debtor's intent. The debtor has a deadline to fullfill his intent. You also need to deal with the trustee. Trustee owns the debtors estate for a while. Trustee can make a claim against funds you owe debtor. Trustee may also abandon his interest as well. You can use the court to prod both debtor and trustee to make a decision. You need to get more complete advice and help from an attorney.
Mike T. Ramsey agrees with this answer
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