Do Not Rely on a Buyer for Bankruptcy Advice
Bankruptcy can place legal restrictions on property and proceeds. Before listing, signing a purchase agreement, delivering a deed, paying selected creditors, or using sale money, disclose the plan to your bankruptcy attorney. If a case is already open, ask what notice, trustee participation, lender consent, plan modification, or court order is required.
Exemptions and Equity Need a Current Calculation
Indiana exemption law appears in Indiana Code Title 34. Do not use an undated amount from a marketing page to plan a filing or sale. Counsel should confirm the current amount, whether it applies to your ownership and filing circumstances, and how liens and sale costs affect any nonexempt value.
Questions for Indiana Bankruptcy Counsel
- Is the home property of the bankruptcy estate, exempt, or abandoned?
- Who has authority to market and sign a contract?
- Must the trustee, creditors, lender, or court receive notice or approve?
- Is the proposed price and marketing process adequate for this case?
- How will mortgages, taxes, liens, costs, exemptions, and remaining proceeds be handled?
- Can the debtor use any proceeds, and if so, when and for what purposes?
What Mortgage Forfeiture Can Provide
Roger can review the property, relevant nearby sales, condition, ownership information, and title concerns before preparing a written offer. A cash offer may remove a buyer-financing contingency, but it is not a safe harbor and does not guarantee trustee consent, court authorization, lien release, exemption treatment, or closing.
If counsel says the transaction can proceed, the written contract and title-company settlement statement should show the purchase price, transaction costs, payoffs, taxes, prorations, and estimated net. Closing timing is proposed only after those requirements are understood.
Primary Starting Points
- U.S. Courts: Chapter 7 Bankruptcy Basics
- U.S. Courts: Chapter 13 Bankruptcy Basics
- U.S. Bankruptcy Court, Southern District of Indiana
General information only; not legal, tax, credit, or financial advice. Ask qualified Indiana bankruptcy counsel about the facts and current law in your case.