sale of rental property

What is the name of your state? New Jersey

I filed bankruptcy (chapter 13 - 1 year ago) and I own an additional property in PA. The expenses related to this property have risen dramatically and the people who are renting the property would like to buy it. I am currently unemployed and so we only have 1 income. Can we sell it?

[I AM ALWAYS LIABLE]

Originally posted by dmcin
What is the name of your state? New Jersey

I filed bankruptcy (chapter 13 - 1 year ago) and I own an additional property in PA. The expenses related to this property have risen dramatically and the people who are renting the property would like to buy it. I am currently unemployed and so we only have 1 income. Can we sell it?

My response:

Sure you can. Why would you think you can't sell your own property?

IAAL

When we filed bankruptcy we had no intention of selling the property but the lawyer made it sound as if it would be very complicated to sell it. We just want to sell it directly to another person but we are not sure how this will effect our bankruptcy. In other words if the court will take the profit. I've looked all over and can't seem to find anything realted to this.

[I AM ALWAYS LIABLE]

My response:

If the Trustee was going to "take the profits", he/she would have simply seized the property a long time ago, and sold it at auction.

Obviously, this didn't occur. Apparently, no one wants the property other than your renter.

Sell it.

IAAL

[AttorneyOney]

The property belongs to your estate. In order to sell it outside the ordinary course of business, you would need to follow the same procedure as would a trustee under section 363 of the code (see code section 1304), which basically means you need to file a motion with the court seeking leave to sell.

I wouldn't call this "very complicated", but it is certainly more complicated than if you weren't in the middle of a ch. 13 case. A smart and careful buyer will insist on recording an order permitting the sale in order to keep the title clear, by the way.