Central District Consumer Bankruptcy Attorney's Association

Reply-To: Rex Tran
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Good day,
I would like to know your opinion with regards to the facts below.
Debtors own principal residence. They are behind on the mortgage. Lien
holder is willing to buy back the property for an amount that will pay the
Debtors an $100k after costs.
Lien holder filed motion for relief. There were no objections and it was
granted. The Motion stated that they wanted to purchse the property and
debtors would receive $100k in proceeds.
Trustee filed a stipulation with the lien holder, which was granted,
to *abandon
*the real estate. The stipulation also stated that it is agreed that there
is no equity. It also laid out the terms of the sale and that the Debtors
would be receiving $100k. It silent as to reinvestment.
The trustee is now somewhat under the impression that the proceeds of sale
need to be reinvested in a new residence. Our stance is that the property
is abandoned and therefore no longer part of the bankruptcy estate and can
be converted.
Your thoughts would be greatly appreciated.
If you have any questions, comments or concerns, please do not hesitate to
contact me. Thank you.
Very Respectfully,
Rex Tran, Esq.
Partner
Law Offices of Chen & Tran
1633 E 4th St #214
Santa Ana, CA 92701
P| (888) 938-5393
F| (818) 436-5953
rtran@chentranlaw.com
chentranlaw.com
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Good day,I would like to know your opinion with regards to the facts below. Debtors own principal residence. They are behind on the mortgage. Lien holder is willing to buy back the property for an amount that will pay the Debtors an $100k after costs. Lien holder filed motion for relief. There were no objections and it was granted.would receive $100k in proceeds.Trustee filed a stipulation with the lien holder, which was granted, to abandon the real estate. The stipulation also stated that it is agreed that there is no equity. It also laid out the terms of the sale and that the Debtors would be receiving $100k. It silent as to reinvestment.The trustee is now somewhat under the impression that the proceeds of sale need to be reinvested in a new residence. Our stance is that the property is abandoned and therefore no longer part of the bankruptcy estate and can be converted.Your thoughts would be greatly appreciated.If you have any questions, comments or concerns, please do not hesitate to contact me. Thank you.
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