On a question where the courts are split, Bankruptcy Judge Pamela McAfee sides with the majority and holds that a chapter 13 debtor can’t sell co-owned property.
New York’s Judge Philip Bentley interpreted Section 363(f)(5) to permit a sale free and clear whenever a creditor could conduct a foreclosure or a UCC sale.
The existence of a competing bidder does not put the buyer on notice of an ‘adverse interest’ to avoid dismissal for mootness under Section 363(m), the Sixth Circuit BAP says.
