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Can the trustee of an irrevocable trust file Chapter 13?
Anonymous1 views4 answers
Trust asset is a single family residence that has about $150,000 in equity, but lender is foreclosing on March 22, 2011. Can the trustee file for bankruptcy under Chapter 13 to stop sale and reorganize the back payments on the loan that was taken out against the property in the name of the trust via the trustee?
The correct procedure would be to file a chapter 11.
Keep in mind that most bankruptcy lawyers do NOT handle chapter 11s. I handle chapter 11s and would be happy to provide you a free consultation.
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Attorney Gerald Wolfe
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C13 is not an option for an irrevocable trust. Are you sure the trust is irrevocable? as opposed to revocable which would be no problem at all. Most trusts are revocable and are for the purpose of avoiding probate primarily. If truly irrevocable, then you need to discuss with trust attorney to see if it can be terminated and the property transferred now to a human being who might be eligible for C13. C11 is probably available but it is very expensive. Your time is extremely short so you better run to the lawyers' office for immediate action (hopefully a lawyer that knows about trusts and bankruptcy).