Property that might be liquidated in a chapter 7 very well could come back to you as abandoned property

Over and over I see clients that have timeshares list them and potentially they are things that could be liquidated by the trustee to pay creditors depending on how many other assets you have, but more and more trustees can’t sell them so they go back to my clients. The other day in a 341 hearing, my client was asked if she had transfered any property in the last three years which she had and I knew about. She mentioned that she had a short sale on a house and that she had sold a timeshare about 8 months ago. The trustees ears perked up and he was very interested not because he wanted the proceeds which had been spent but rather because most trustees can’t sell a timeshare if there life depended on it. Thats because they sell them as is on ebay and don’t have the luxury that the timeshares sellers do when they lure you in and give you all these great discounts and free things on your trip which makes you feel entitled to buy a timeshare which are typically horrible investments unless you use them correctly etc. The after market retail on timeshares is horrendous. They are typically worth 10% of what you paid for it. The problem trustees have is they sell them as is and you don’t know if there are unpaid dues, maintenance fee arrears etc. So when he found out she got 900 for a property in hawaii he asked how she did it and she mentioned that she used a broker and it took some time. The thing is that trustees have 120 days post 341 hearing to sell property or they have to abandon it. I’ve seen raw land supposed worth 40k not sold and returned to clients. I had a guy today who came in. He owns a building leased on a railroad land which he has to pay 700 a month to. He has a secured lien against it for a line of credit. The building is owned outright. He hasn’t paid on the 200k note for two years and they haven’t foreclosed on done any repossession on it. I think its because the building isn’t that marketable and they’d have to pay the lease fees etc so its a liability for the bank to take it back. The interesting thing is if we file BK on the corporation which the building is owned by whether the trustee would be able to sell the building. Even if they did they ‘d have to pay the secured lien holder first which would leave nothing to unsecured creditors and therefore is of no interest to the trustee, but I was thinking if there wasn’t a loan against it that was unsecured but they tied it to the building then he’d probably end up with the property back post BK since the trustee would have a hard time selling the 11k square foot property due to the liabilities and land restricitions, code issues etc that had been grandfathered in. Sometimes BK isn’t just about the law its about knowing how things really work in the trusees eyes and seeing how things play out every day. If you need advice talk to a local palm springs, palm desert Riverside county bankruptcy attorney. Its worth your while.