What happens after Bankruptcy chapter 13 is dismissed and closed for non compliance of payment?
A house I am buying in Las Vegas, Nevada is still in escrow and I am just waiting for order from the court for release property from the bankrupty court which would happen when all the payments to the trustee are fully paid. Unfortunately, the case was closed for non compliance of payment. Since the Bankruptcy case is now closed, and the debtor( seller of the property I am buying) is no longer protected by Chapter 13 from all her debts which went back to ,000. What happens to the house I am buying now that the bankruptcy case is closed? Can the debtors run after the property which is now in escrow?
Posted August 27th, 2010 in Bankruptcy Q And A. Tagged: bankruptcy case, bankrupty, chapter 13, compliance, debtors, debts, escrow, las vegas, trustee, vegas nevada.
If the house was under chapter 13 protection, it could not have been put up for sale until the bankruptcy was dismissed/closed. You would’ve had to petition the court to do so and more than likely the judge wouldn’t do it unless the creditor on the house provided proof that the debt had been met, before he would have released it. Now back to your original question, yes the creditor can and probably will go after the house if the bankruptcy was closed without payment, it is no longer under protection. If I were you I would look into and check for yourself the exactly what’s going on before you get screwed over. I live in LV and went thru a some what similar situation with a house so i do know it cant be sold in anyway while it is under the courts protection unless the court releases it. Be careful and GL.
August 27th, 2010 at 7:01 pmI’m afraid so, you may have to contact a real estate attorney…
August 27th, 2010 at 7:01 pm