Is this legal to sell a house after you have filed a chapter 13 bankruptcy? 21 Answers as of July 03, 2013

After I filed chapter 13 bankruptcy the bank sold my house on a trustees deed and filed the sale. Is this legal to sell a house after you have filed a chapter 13 or will that sale be voided?

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Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
you need to ask for permission before transferring assets.
Answer Applies to: Washington
Replied: 8/25/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
That depends on whether they got permission from the bankruptcy court to foreclose. If they did not file a motion for relief from stay and have it granted by the court, then their foreclosure sale violated the automatic stay of 11 U.S.C. 362, and not only is the sale void, but you can recover damages for having to undo the sale. It is very important that you "undo" the sale immediately before it gets transferred to a 3rd party (a bona fide purchaser for value). One thing you should do immediately is record a certified copy of your bankruptcy petition with the county recorder's office where the property is located.
Answer Applies to: California
Replied: 7/18/2011
Tucker Legal Clinic
Tucker Legal Clinic | Samuel Tucker
If the foreclosure sale occurred after you filed the sale is void.
Answer Applies to: Mississippi
Replied: 7/18/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
Filing a bankruptcy creates an automatic stay preventing continuation of legal proceedings or foreclosure. The creditor must first obtain relief from stay in order to pursue its rights.
Answer Applies to: California
Replied: 7/18/2011
Ursula G. Barrios Law
Ursula G. Barrios Law | Guillermo Machado
If bank got their relief from the stay issued by the court, then it's perfectly legal. Thank you,
Answer Applies to: California
Replied: 7/18/2011
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    Assuming the the sale did not take place prior to you filing, the automatic stay should nullify the sale. See your attorney at once!
    Answer Applies to: Michigan
    Replied: 7/18/2011
    Law Office of Jackie Robert Geller
    Law Office of Jackie Robert Geller | Jackie Robert Geller
    The bank was required to obtain "relief from stay" in order to sell the house after the case was filed. Talk to your attorney right away.
    Answer Applies to: California
    Replied: 7/18/2011
    Guardian Law Group PLLC
    Guardian Law Group PLLC | C. David Hester
    If you filed before the foreclosure was complete and the home sold then no, the filing of a bankruptcy puts an automatic stay on all collection activities and the court can grant sanctionsagainst any creditors that violates the stay. The creditor can then file a motion with the bankrutpcy court to lift the stay and if you do not respond or even if you respond and the court feels that the creditor should have it lifted they can lift it. But if you recently filed and the creditor proceeded without leave of the auto stay they will need to rescind the sale or face sanctions.
    Answer Applies to: Utah
    Replied: 7/18/2011
    Ray Fisher Law Offices
    Ray Fisher Law Offices | Ray Fisher
    Talk to your bankruptcy lawyer about this. Generally a mortgagee cannot foreclose after bankruptcy unless it has court permission.
    Answer Applies to: Texas
    Replied: 7/18/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    If you owned the house when you filed for bankruptcy, the bank cannot sell the house during the bankruptcy until they ask the court for relief from stay. They need the judge's permission to sell the property.
    Answer Applies to: Colorado
    Replied: 7/18/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    The fact you are asking this tells me that you have made a catastrophic mistake and do not have a lawyer. The answer depends on whether you filed a 13 before (and also on whether the bank asked to have the stay lifted). If the answer is no, the sale, absent an order of the bankruptcy court, is void. If you had used a lawyer, the lawyer would have contacted the lender's attorneys and avoided this. Obviously you failed to do that. You will now want to get a lawyer and have the lawyer undo the sale. If you have done prior 13s in the past year, you may have had no automatic stay, unless you filed a motion to impose or extend it. If you made that blunder, it cannot be fixed and you cost yourself a home by filing pro se.
    Answer Applies to: Georgia
    Replied: 7/18/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    The sale is void if in the western states including California if the bank did not obtain permission from the bankruptcy court. You need to notify the bank and foreclosure trustee urgently about the bankruptcy. You should have an attorney if you are in a Chapter 13 case so consult with your attorney and find out why the bank was not notified of your bankruptcy before the sale. You had an obligation to let the foreclosure trustee know about the automatic stay in effect when you filed for bankruptcy relief.
    Answer Applies to: California
    Replied: 7/18/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    LAWQA: Please send this to someone with more experience with ch. 13 processes.
    Answer Applies to: Virginia
    Replied: 7/18/2011
    Financial Relief Law Center
    Financial Relief Law Center | Mark Alonso
    If you were making timely payments into the bankruptcy plan, and that plan included your mortgage arrearages and you continued to otherwise be current while you're paying off your past due mortgage payments, then they should not have sold the property. You should consult your ch. 13 bankruptcy attorney or if you haven't retained one, consider a consultation to review what happened and if you can salvage anything at this point.
    Answer Applies to: California
    Replied: 7/18/2011
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
    Not legal without court.
    Answer Applies to: California
    Replied: 7/3/2013
    Jackson White, PC
    Jackson White, PC | Spencer Hale
    If the bank got permission from the court to sale the house then it is legal. If the bank did not get permission from the court then it violated the automatic stay. You should speak with your attorney. If you do not have an attorney, then get an attorney to help you determine your rights and keep them protected. If the bank sold the house illegally, then I would sue them within the bankruptcy.
    Answer Applies to: Arizona
    Replied: 7/16/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    If the bank did not have relief from stay, the sale is void.
    Answer Applies to: California
    Replied: 7/16/2011
    Apple Law Firm PLLC
    Apple Law Firm PLLC | David Goldman
    Yes as long as you have the right to sell the home and pay the debt on it
    Answer Applies to: Florida
    Replied: 7/16/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    There is insufficient information to fully answer. If you did not make the payments and the lender was given relief from the automatic stay, the answer is yes.
    Answer Applies to: California
    Replied: 7/16/2011
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