Personal Bankruptcy Debtor filed chapter 7, am I at risk?

[nrek]

I am selling a vacation lot that is owner financed. I just received notice that the buyer has filed for chapter 7. I still have the title. Do I get my lot back without recourse or do all the creditors have to share what assets are available? Do I need to do anything to protect myself? Individual is still sending me payments.

Larry

 

[Theresagail]

Depends on if you have a legal binding contract, if you do, then you need to go to the 341 hearing and get them to reaffirm the debt or surrender their interest in property--

 

[nrek]

I do have a contract, but he is in North Carolina and I and land are in Texas. I cannot afford to travel there.

 

[Theresagail]

You still need to fill out a proof of claim, if you dont then you will be SOL you should have got one when you got the bankruptcy papers -- you should also talk to this person's attorney--

THis land is not a asset to him because there is a lein on it ( you) this is your asset not his-- so they can not take this land from you-- the biggest question is if he plans to reaffirm the debt with you ( keep paying) or surrender it back --- if they surrender it then you will just find someone else to buy it if they reaffirm you need to do the proof of claim and file the reaffirmation papers ( talk to his attorney) those reaffirmation papers must be filed with the bankruptcy court or it will not be reaffirmed