[CLBS] excess funds from foreclosure

[Jeremy Gugino]

Assuming the real property was properly scheduled under 521, it was
abandoned by operation of law pursuant to 11 USC 554(c).  Unless the debtor
committed fraud somehow in the case or in valuing the property, then the
proceeds from the foreclosure sale are likely not property of the estate.

-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Laura Burri
Sent: Wednesday, September 25, 2013 10:25 AM
To: CLBS at admws.idaho.gov
Subject: [CLBS] excess funds from foreclosure

I have a client that filed a chapter 7 bankruptcy in 2011. She listed her
house as having no equity. The statement of intent shows she was
surrendering the house. The case closed as normal as a no asset case.

The foreclosure finally took place this year in 2013. The title company has
contacted the debtor that there are excess funds after payment to the
lenders. Does anyone know of any reason why the debtor cannot keep the
excess funds? Thank you.

Laura E. Burri
Attorney at Law
Ringert Law Chartered
455 S 3rd Street
Boise, ID 83702
Phone 208-342-4591
Fax 208-342-4657

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