Can anyone provide advice as to whether putting my property up for short sale will affect my BK7 filing? Thinking of putting the house up for short sale in the next couple of weeks. Also plan on filing BK7 the second week of November. I have a call into my BK attorney but thought I'd ask here, too....
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Hi again jacksjean,
Kinda repeating myself from the other thread, sorry if I get boring....
Short sale before BK only benefits the real estate agent getting the commision. If you are going into a BK, it is a lose-lose situation for you and the lender. Complicating the BK is the least of your worries: if you did sell it before filing, you would be getting a 1099-C from the IRS for taxes on the forgiven portion of the loan, and I don't think that gets discharged in the BK. After you file, you can't sell it anyhow, the trustee has control over that.
Stay in the house, live payment-free through the BK and until the lender gets around to foreclosing, probaby 6 months or more and in some markets a year or more. Think of all the payments you could be saving instead of paying non-dischargeable taxes from a short sale....
Good luck with your filing, right before Thanksgiving, very appropriate!
Tom in ColoCh7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010
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