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  1. #1

    Default Trustee Wants More Time to Sell Estate Assets

    My question involves bankruptcy in the state of: TN

    I filed Chapter 7 near the beginning of the year and received the standard discharge. I did not reaffirm the house, and the trustee thinks there is equity, but not so much to overcome the $50,000 exemption. I agree to drop the exemption to $10,000. Thinking that the pluses for me are the that I can stay in the house longer, plus, I have the chance to get $10k. The trustee agrees with the lien holder to permit the trustee 120 days to sell the property. Well, 120 came and went. I am reemployed and am considering working with the lien holder to cure the default or modify the loan.

    I called the real estate agent for the trustee and told her I was no longer interested in showing the property and that the 120 stay had expired. The exact wording of the order was that the trustee had 120 days to sell and after that, without any hearing, the lien holder was free to foreclose. Well, the trustee called me and left a nasty message that she was going to void the discharge and that she would have a judge wipe out my exemption if I did not immediately allow access to the house. I think she should have contacted my attorney instead of me...I immediately called my attorney who said he would handle it, I hope he can.

    I just wanted to recount what can happen if you make a trustee mad. They have a lot of power and wield it. I'll update when I hear something.

    Excerpt from the order

    "It appears that the Trustee and Movant have agreed that the automatic stay should remain in place in order to provide the Trustee an opportunity to sell the Property.
    IT IS THEREFORE ORDERED that (i) the motion to modify the 11 U.S.C. § 362 automatic stay filed by Movant be conditionally denied, and that the automatic stay remains in place, in order to provide the Trustee an opportunity to sell the Property; (ii) that Trustee be permitted 120 days from the entry of this order to conduct the sale of the property and satisfy
    movant’s mortgage balance; (iii) that if the Trustee cannot sell the Property within the aforementioned time period, the Movant shall immediately be granted relief from stay and the property abandoned from the estate without any further hearing or filing and any funds produced from a sale of property in excess of liens shall be turned over to the Trustee."

    I think the order is clear, the trustee had 120 days. She couldn't sell and now wants more time.

  2. #2
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Trustee Came Unglued Today

    Not surprised the Trustee came unglued. You probably should not have contacted the Trustee's agent. If you wanted to communicate your belief that the listing should be removed you should have discussed the same with your attorney and allowed him to contact the Trustee. If the listing is no longer valid it would be up to the Trustee to instruct his agent.

    Hopefully your attny will be able to smooth things out with the Trustee.

    Des.

  3. #3
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Trustee Came Unglued Today

    I am reemployed and am considering working with the lien holder to cure the default or modify the loan.
    congratulations on your job. Have you actually started work yet?


    I would suspect the trustee contacted you was because you contacted their RE agent. That suggests your attorney is no longer retained by you, otherwise it would be your attorney's place to contact the trustee or their RE agent.

  4. #4

    Default Re: Trustee Came Unglued Today

    All the showings go through the RE. When the RE wanted pictures I sent them to her. When the RE agent wanted a key I gave it to her. She wanted to show the house and gave me 90 minutes notice, so I told her the 120 days were up. The RE agent knew I was represented because I told her I was going to contact my attorney and see what he said. While I was waiting for the attorney to return my call I was called by the trustee, who also knows I am represented, because I found out that she contacted my attorney too.

    For now the cheap plan is to do what the trustee says. Apparently even though the court ordered the property automatically abandoned after 120 days it doesn't really mean it is abandoned according to the court or the trustee.

  5. #5
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Trustee Came Unglued Today

    Quote Quoting teacher94565
    View Post
    All the showings go through the RE. When the RE wanted pictures I sent them to her. When the RE agent wanted a key I gave it to her. She wanted to show the house and gave me 90 minutes notice, so I told her the 120 days were up.
    Not to beat a dead horse but. . . it is one thing to cooperate with the Trustee and his agent in allowing the Trustee to do his job. It is quite another thing to purport to "fire" the Trustee's agent.

    Again, let your attny handle this. If the property is abandoned by operation of that lift stay order and the Trustee wants the court to modify the order or bring the asset back into the bk estate he will file a Motion. Your attny will probably file a response and the court will set a hearing. That is typically how it is done. Keep us posted.

    Des.

  6. #6

    Default Re: Trustee Came Unglued Today

    It took about a week, but I think the trustee must have finally understood the order and gave up trying to bully me. I don't know what my attorney said to her, but whatever it was she backed down.

    I'm working and I think the lien holder is willing to work with me on some type of loan modification. So, the news is all good and thanks for the advice.

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