I’ve been a Los Angeles bankruptcy lawyer for 34 years. I have wisdom to share with real estate agents. For example, check out #AskLeon and the bankrupty advice I offer regularly at Nolo’s Bankruptcy, Debt & Foreclosure Blog. As an agent in Los Angeles, you should know some basics about bankruptcy. Bankruptcy cases and real estate sales overlap with surprising regularity. Especially in the universe of Los Angeles. Los Angeles is the bankruptcy capitol of the world. An active real estate agent will run into bankruptcy issues.
This is the first part of a series. Future installments will include what you can do when: Title is showing old judgment liens and a bankruptcy; You have a listing that has gone into foreclosure; My clients lawyer won’t return my phone calls.
Los Angeles Bankruptcy Lawyer Tips for Real Estate Agents: “We have an Offer But My Seller Filed Bankruptcy.”
Hey. That’s great news. It’s certainly better than having a listing that won’t sell. The bankruptcy case does not mean your sale is dead. It just means there is more work ahead. You need to know which bankruptcy chapter was filed. Under chapter 11 and chapter 13 bankruptcies, the debtor usually retains the power to sell. However, a court order permitting the sale will probably be necessary. The debtor’s lawyer can handle that. Figure on it taking around one month. If everybody gets busy at the start of escrow, it should be no sweat getting the court order with plenty of time to spare.
If your client is in chapter 7 bankruptcy, there are different considerations. Most chapter 7 cases are “no asset” cases. A “no asset bankruptcy case” means that the debtor has nothing worth enough money to sell it for the creditors. In a chapter 7 no asset case, your client’s lawyer can request a court order permitting the sale. What happens when a chapter 7 is an “asset case”? That means the bankruptcy trustee feels money may be available to pay something to creditors. That rarely occurs. But it would take a whole book to cover the subject. So, we will skip it for this article.
Suppose your client doesn’t have a lawyer? Not a problem. Your client should be able to find a lawyer to handle just this one task.
For Chapter 13 real estate sales proceedures, see:
Los Angeles Bankruptcy Lawyer – We have some great Books to help you.
Behind on house payments? Don’t go another day without this book.
It is possible to save your home, your money, and your sanity. This books helps you make sense out of all the Los Angeles Foreclosure pressures you are facing.
- The ins and outs of foreclosure procedures, with state-by-state information.
- How to decide whether or not you should try to keep your house.
- Using bankruptcy to buy time or save your home.
- How to avoid “foreclosure rescue” scams.
MORE bankruptcy self help books. Learn the SECRETS you need to survive financial disasters. Written by Los Angeles foreclosure and bankruptcy lawyers Leon Bayer and Jeffrey Wishman.
A HUMAN GUIDE TO BANKRUPTCY – By Leon Bayer and Jeffrey Wishman.
The book is now on Amazon.com.
- This is bankruptcy, made pure and simple. It’s a HUMAN approach to law.
- A complicated law becomes easy to understand.
- Leon Bayer and Jeffrey Wishman have each been a Los Angeles Bankruptcy Lawyer for more than 34 years.
- The book has a special focus on avoiding common mistakes.
- It covers Chapter 7 and Chapter 13.
I am very excited about this book. The original author was Stephen Elias. The late Stephen Elias was a great master of this task. He knew how to explain complex laws in a simple way. Nolo asked me to help with the new, 5th edition. Stephen had just passed away. I wanted my own contributions to the 5th edition to stay faithful to Stephen. I have been a Los Angeles Bankruptcy Attorney for 34 years. My law firm is Bayer, Wishman and Leotta. My law partner Jeffrey Wishman and I have developed a unique tradition. We offer free consultations to everyone. Over more than 3 decades, we have practiced our passion for helping people. NOLO has the same passion. Their motto is, “Law for All.” They have forged a great tradition. They make the law accessable to everyone. I have been thrilled to be involved with them. NOLO has sold more than 250,000 copies of bankruptcy books.
Do you like reading questions and answers? You’re sure to like the “ASK LEON” column. Los Angeles Bankruptcy Specialist Leon Bayer answers real questions. You will find it on the Nolo Publications bankruptcy blog web site. We are also found on Google+. Leon Bayer is a Certified Bankruptcy Specialist byt the State Bar of California. Jeffrey Wishman is a Certified Bankruptcy Specialist byt the State Bar of California.
- Los Angeles Bankruptcy Lawyers Fees: Why the Differences?
- Los Angeles Bankruptcy Fees – Don’t Play the Game.
- Los Angeles Bankruptcy Attorney Fees – Price List.
Suppose you find out about the bankruptcy the same week you expected to close escrow. that you handle, you need to know about a lot sooner than the week you expected to close escrow.