Buying property from a seller filling Bankruptcy.
My parners and I would like buy some properties owned by a seller that is about to file bankruptcy. How can we protect ourselves in the transaction? If we buy these properties for the amount owed before the current owner files for bankruptcy can the courts come after us?
1 Answer from Attorneys
Re: Buying property from a seller filling Bankruptcy.
If you buy the property prior to the bankruptcy filing, it would be a purchase like any other if there were no bankruptcy pending (i.e. all due diligence applies, check all liens, title record search etc, then close as usual). If the bankruptcy has already been filed, then you have to proceed through the bankruptcy court in which the bankruptcy has been filed to get approval for the sale from the trustee in addition to the usual course of action. If the sale is done properly according to the law of the state which the property is in, and is done prior to the filing of the petition, the "courts" cannot do anything to you. Now if the sale was done to defraud creditors in any way, you may have some issues. That's about it on the "general" advice. If you have any other questions you may call me at my office in Macon, Georgia 478-757-8111.
Deric J. Beaudoin
Paul M. Knott, LLC
4875 Riverside Drive
Macon, GA 31210
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