My question involves bankruptcy in the state of: Arkansas
Ok, so I had a family business that went under a few years ago and I got into some financial trouble. As a result, I had to file for bankruptcy last May (2010). Everything was in order, and I had enough exemptions to put toward my house so I wouldn't lose it. It's nothing fancy...a couple of realtors valued it at between $101k and $112k, and I still owe about $98k on it. At least I'm not underwater, right?
Things get a little complicated though, because across the highway from me, someone built a new gated community with multi million dollar McMansions all over it. Because of this, three years ago the county appraised my property at $171k!
At the time, I didn't think much of it, other than it might help my resale value eventually. But my bankruptcy trustee saw this, and thought there was something here to go after. He told me he was going to sell my house.
So he gets his realtor to come out. He takes THREE pictures of the place and says he values it at $145k. I ask him if he wants to know about the issues with the house that could affect the value (it's almost 50 years old...it has some issues...). He says "No", and doesn't have me fill out any kind of disclosure form or anything. He leaves and lists the house for sale at $145k.
Since then, the county has come to their senses and dropped their appraisal to $121. In eight months, only ONE person has come to look at the house (that was last week). I've been paying my mortgage and living here, and hoping that the trustee will realize there's nothing here to take. But he was notified a long time ago of the appraisal change and the other realtors' values, and he didn't seem to care.
So last week, a made my own disclosure sheet listing the issues with the house and gave it to the realtor that has the listing and the realtor that brought someone out to look at the house (at least THEY realized it wasn't worth what they were asking for it...). Of course this got around to the trustee and he wants to "discuss" this with my new attorney (which I don't have because mine passed away two weeks ago).
Sorry this is so long winded. I guess I have two question: 1) Am I in the right to disclose these house issues with prospective buyers? Yes, it's a deterrent, but I made sure it was 100% true. And 2) What can I do to get this guy off my back and let me go about starting over?!?

