Selling Property After Filing Bankruptcy in Utah
As mentioned elsewhere on this site, the bankruptcy process begins with the filing of a bankruptcy petition, whether it be a Chapter 7 petition, Chapter 13 petition, or another petition under the United States Bankruptcy Code. The filing of the bankruptcy petition creates an automatic stay on your creditors. This means that your creditors can no longer make efforts to collect the debt you owe. Instead, they must go through the bankruptcy courts in order to collect anything.
You Also Are Limited to Working Through the Bankruptcy Court
When you file for a Utah bankruptcy your creditors must work through the bankruptcy court in order to recover anything. You also, however, cannot distribute or sell any of your property without the authority of the bankruptcy court. You cannot give preference to any creditor by giving that creditor property to settle any debt. The U.S. Trustee has the sole power of management of your assets unless held otherwise by the bankruptcy court.
You Must Get Court Approval for Selling Property After Filing Bankruptcy in Utah
Let’s say you have an automobile that you own outright that you want to sell, but you just recently filed a bankruptcy petition. Once you file a bankruptcy petition, and until you have been discharged through order of the bankruptcy court, you cannot sell any property without the court’s approval. Thus, even though you may own that car outright, you cannot sell it without the approval of the court.
Motion and Hearing
In order to get the court’s approval to sell property after filing a bankruptcy petition your attorney, like the Salt Lake City Bankruptcy Attorneys at Salcido Law Firm must file a motion to get leave to sell the property. The court will then hold a hearing on the motion and decide whether to give you permission to sell the property.
Experienced Salt Lake City Based Bankruptcy Attorneys
We offer free consultations about your potential bankruptcy so call us at 801.413.1753 to schedule a free consultation. By meeting with us you will know your options and how best to proceed to once again have good credit and a solid financial future.