Legal Question in Bankruptcy in Minnesota

Contract for Deed & Bankruptcy

I was wondering how bankruptcy will affect my Contract for Deed that I have in place with a family member? I have several outstanding credit card debt that I am having trouble paying and want to explore all options. I want to make sure that if I file bankruptcy, nothing will happen with my contract for deed.

Asked on 12/29/04, 1:21 pm

2 Answers from Attorneys

David Kelly-952-544-6356 Kelly Law Office

Re: Contract for Deed & Bankruptcy

Your question does not clearly say if you are buying or selling with the contract for deed.

If you are selling, then the contract for deed is an asset, like stock or money in the bank, and it could make a Chapter 7 much more difficult. In a Chapter 13, however, they would only look at the cash flow and not the asset itself.

If you are buying, then the real estate being purchased is like any other real estate you might own, and would be exempt if it is your homestead.

Good luck.

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Answered on 12/29/04, 1:39 pm

Jeffrey Bursell Hoglund & Chwialkowski, PLLC

Re: Contract for Deed & Bankruptcy

In a typical case, as long as you are current and continue making the payments on the contract for deed, then you will be able to keep the home and loose the credit card debt.

In order to better answer any questions, I would recomend speak with an attorney that practices in bankruptcy. If you wish to call us to setup an appointment, please call us at 651-628-9929

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Answered on 12/29/04, 2:15 pm

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