We are often asked, “should I short sale my property if I already filed bankruptcy?”
Maybe.
There may be several reasons to proceed with either a deed-in-lieu of foreclosure or a short sale of your home after your bankruptcy discharge is granted and your bankruptcy case is closed:
- To avoid paying Homeowner’s insurance.
- To avoid being liable for any injuries sustained on the property.
- To avoid liability for HOA dues.
- To avoid liability for failure to maintain the property.
The above reasons may cause you to lean towards a short sale or deed-in-lieu of your property. However, it would be wise to consult with an attorney before making a final decision.
We proudly assist residents of Long Island: Nassau county, Suffolk county, New York City: Queens, Brooklyn, Bronx, Staten Island, and Manhattan. Call (516) 858-2620 to arrange a FREE consultation with a bankruptcy attorney!
According to New York Domestic Relations Law, there are certain Automatic Orders, which shall remain in effect while the divorce is pending in Supreme Court. One of these Automatic Orders addressed in this statute prevents any spouse from selling, transferring, encumbering, assigning, or removing any property without the consent of the other spouse. This preserves the ability of the court to make a proper ruling on any and all property that they have jurisdiction over at the time the action is brought. This section of the DRL also covers such topics as 401k retirement plans, health insurance for spouse and children, running up marital debts, and more.
If you or your spouse have filed for divorce or are planning on filing for divorce and you are not sure if this situation is one you will have to encounter, call The Long Island Family Law Firm of Vaughn & Weber, PLLC, at (516) 858-2620 to speak with a family law attorney!
Please visit our Family Law and Divorce categories to learn more about Family Law and Divorce issues.
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