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I filed for bankruptcy chapter 13 to stop foreclosure of coop, now I have a customer who wants to buy a coop, I want to withdraw

New York, NY |

a petition (the bankruptcy is not discharged yet) and sell an app. Can I do it and why the Bank's representative told me about short sale - if I have a client, why I need to do a short sale? Thank you

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Attorney answers 7

Best Answer

You can ask the Court to dismiss your case, but I would think the better choice is to ask the Trustee for permission to sell the coop and modify your plan accordingly. If you are doing a short sale anyways, the Trustee should not be opposed to it, and even if you are somehow getting some money out of the sale, it should be exempt if you properly took your exemptions when you filed. In addition, completing a short sale in bankruptcy is better tax-wise than one outside bankruptcy because of the potential for forgiven debt income outside the bankruptcy. Finally, I believe a discharged bankruptcy is always better than a dismissed bankruptcy on your credit report. If you are discharged future creditors know that you don't owe anyone money, if you are dismissed there is always the chance that there are creditors out there who you still owe money to.

Good luck,



Dear Mr. Kim, I cannot do it through the bankr because I will have nothing left, and I cannot pay according to the plan that Bankr attny prepared for me - 100% so I would need to pay 1300 every month plus maint. and mortgage. If I would pay for the consultation or whatever, would you be able to answer, how soon the foreclosure will be scheduled if I will; withdraw the bankr ? Thank you in advance.


You can dismiss a Chapter 13 case at any time as long as the court doesn't determine that it is being dismissed for bad faith reasons. Be careful, however. If you dismiss your case, the foreclosure sale can proceed prior to you being able to consummate the sale. You may be better off selling the coop through the Chapter 13 case. You should discuss your options with your (a) bankruptcy attorney in your area.

As to your short sale question, if your buyer is offering enough so that you will receive funds after the close of escrow (i.e. enough to pay all mortgages and liens against the property, including costs of sale and have some left over for you) then that is probably superior to doing a short sale. If not, then a short sale may make more sense than going through the hassle of selling to a private party.

Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
bankruptcy blog:
Follow Me on Twitter: @bklawr

Legal disclaimer: Mark J. Markus practices law in California only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation.


You can get permission in the Bankruptcy to sell the COOP. You could dimsiss and then sell, but if the sale does not go through, how far off is foreclosure? Is the foreclosure sale still pending? Someplaces the foreclosure sale can be continued without notice to the owner indefinitely.
Short would be needed if the buyer is not willing to pay more than what is owed on COOP.


If you filed Chapter 13 you have the absoulute right to dismiss it. If your deal with your buyer falls through or the buyer does not pay you enough to satisfy the mortgage and all arrears plus any missed COOP fees, the sale can only go through as a short sale.


While you can usually stop your proceeding the problem is what if you stop it & then the sale falls through? Because of this and other potential problems that might happen your questions are not simple enough for me to just write answers as I need more information.

I would be happy to speak with you about your case and help answer your questions. If you are interested, feel free to call. Additionally, we offer free consultations on the phone so you do not even have to leave your home to get help.

I wish you the best of luck.

Hayley Greenberg
Greenberg & Merola, LLP
Attorneys at Law
521 5th Ave. Ste. 1700
New York, NY 10175
(212) 593-6111, facsimile (516) 887-1720 email
(Additional offices: Brooklyn, Queens, Long Island)


The answers here are I believe, with respect to my colleagues, not correct. First, you do not have an absolute right to dismiss a Chapter 13 case. The trustee can oppose it and so can creditors. To dismiss you have to show all creditors will be paid at the closing. Second, you have not disclosed the relevant facts for some of the answers to have been given. If it is a short sale, then you might want to convert to Ch. 7. I am not sure why you are in 13 in the first place. If you are making money on the deal, but want to keep it and stiff your creditors, there are ways to do it, but not ways that should be posted on an internet board. Thus, you need to meet with someone who can look at the documents and the status of your case.


You need the consent of the trustee to dismiss for this reason. The creditors have to be considered. Are the creditors being paid at closing. There are pitfalls with dismissing the case. The buyer could fall through and then you have the foreclosure. Why not sell within the bankruptcy and pay the creditors. You get your discharge as well and better tax treatment. I have had this happen to clients and they sold within the Chapter 13 and completed the plan with the proceeds of the sale.

The short sale question I need more information to answer