Q. When purchasing a property from sellers who have filed bankruptcy, what needs to be done with the seller, the seller\'s attorney or the bankruptcy court in order to purchase. Is there a procedure to follow or key things to do or keep in mind?
A. If they are in Chapter 13 BK, you are OK to proceed as normal. Subject to, short sale, cash purchase are all OK if they are in Chapter 13. You may need to communicate with their BK lawyer or the BK trustee but they should not slow anything down.
If they are in the middle of a Chapter 7, there are some things you can do but the general answer is hands off. You would need to petition the BK court to enter into any agreement with the seller and many questions will need to be answered. This does not mean you cannot pursue if they are in
Chapter 7. It is just more complex.