Central District Consumer Bankruptcy Attorney's Association

Ch. 7 debtor wants to dismiss her voluntary case because the Trustee is trying to sell a rental property she owns.
In the Ninth Circuit (which is where this case is filed) dismissal is allowed unless there is "plain legal prejudice" to the creditors. Obviously, such prejudice would include debtor dismissing case just to avoid having the creditors get paid.
Now, here are the relevant facts:
Debtor owns 2 pieces of real property. Let's say, property A and B. Prior to filing, debtor lived in B and her mom lived in A. Both properties had marginal equity, but A had more, so to prevent sale of A, debtor moved in with her mom, filed a homestead declaration and rented out B.
Trustee is now trying to sell B, which has dramatically appreciated in value.
Here's the rub: Apparently debtor's mom is really the equitable owner of property A, because she made all the mortgage payments (up to debtor's moving in), made the down payment, etc. Thus, assuming that is true, debtor would have had only a legal interest in A, and could have stayed living in Property B and not been facing this problem.
So, what does your collective wisdom say debtor's chances are in prevailing on a Motion to Dismiss (and then refile) her Chapter 7 case based on these facts?
(and by the way, I advised debtor to consult with a real estate attorney prior to filing, but she declined)....
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Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173
(818)509-1460 (fax)
e-mail: bklawr@bklaw.com
web: http://www.bklaw.com/
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Ch. 7 debtor wants to dismiss her voluntary case
because the Trustee is trying to sell a rental property she owns.

In the Ninth Circuit (which is where this case is
filed) dismissal is allowed unless there is "plain legal prejudice" to thecreditors. Obviously, such prejudice would include debtor dismissing case
just to avoid having the creditors get paid.

Now, here are the relevant facts:

Debtor owns 2 pieces of real property. Let's
say, property A and B. Prior to filing, debtor lived in B and her
mom lived in A. Both properties had marginal equity, but A had more, so to
prevent sale of A, debtor moved in with her mom, filed a homestead declaration
and rented out B.

Trustee is now trying to sell B, which hasdramatically appreciated in value.

Here's the rub: Apparently debtor's mom is
really the equitable owner of property A, because she made all the mortgagepayments (up to debtor's moving in), made the down payment, etc.
Thus, assuming that is true, debtor would have had only a legal interest in A,
and could have stayed living in Property B and not been facing this
problem.

So, what does your collective wisdom say debtor's
chances are in prevailing on a Motion to Dismiss (and then refile) her Chapter 7
case based on these facts?

(and by the way, I advised debtor to consult with a
real estate attorney prior to filing, but she declined)....

***********************************************Mark J. MarkusLaw
Office of Mark J. Markus11684 Ventura Blvd. PMB #403Studio City, CA91604-2652(818)509-1173(818)509-1460 (fax)e-mail: bklawr@bklaw.comweb:
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