Chapter 7 Bankruptcy Trustee Charles Daff
Recently Mr. Daff had a case in front of him where the information provided on Schedule “A” was incomplete. (As a reminder the Schedule “A” of a bankruptcy petition is where you list the real property that the debtor owns).
In this petition, the debtor listed real property that was in another State. For the description of the real property he wrote the name of the street the vacant lot was on and the city the parcel was located. For example it read “Old Mill Road, Houston, Texas”. This was a description of what turned out to be a vacant lot, however this was not an accurate enough description for the trustee to locate the property.
Mr. Daff asked the debtors for the legal description or the property assessor’s number of the property. The trustee said that he wanted the petition to be amended so that if anyone was to look at the petition, that person would know exactly where the property was located, so that person could value the property if need be. This information also helps the Trustee to locate the real property and can then Mr. Daff can ask a local realtor to give a valuation of the real property to assist the trustee in his investigation of the value of the property.
This hearing was continued to allow the debtors to send to the trustee a copy of the property tax bill (which would show the assessor’s tax number) or a copy of the deed to the real property (which would show the legal description of the lot). When the trustee receives that information, then he can determine if the property value listed in the petition was correct.
When you have a vacant lot or an out of State real property, describe the real property in Schedule “A” of the petition with a legal description of the property or an assessor’s parcel number. By doing this, the Trustee’s staff can determine the value of the real property before the hearing. This information will negate having an amendment made and may prevent a continued hearing.