by Michael Selinfreund, President/General Counsel of Cherry Creek Title Services, Inc.
This article and video presentation is for educational purposes only and not intended as legal advice. To view more educational videos on real estate and other related subjects visit us at the Cherry Creek Title Services Channel on You Tube
Yes. However, it requires the cooperation and approval of the Trustee to release “abandon” the Property. And, depending on the jurisdiction, it may still require a Motion to Abandon the Property and an Order authorizing sale from the Bankruptcy Court. And predictably, is not a fast process. Since a typical Chapter 7 (Straight Bankruptcy) case takes 90 days from filing to discharge, the wiser move is to just wait until the case is completed. Pursuant to section 522 of the Bankruptcy code, the Trustee has control over the debtor’s estate from filing until discharge so the debtor should refrain from entering into any contracts of any sort (e.g. listing agreement; sales agreement) until after receiving their final discharge.