never seen this happen before

[djohnson]

What is the name of your state? Tennessee

Ok I have had a case come up that I have never seen before.

Person owns a home and it has a mortgage a second mortgage and a UCC-1 liens on it. Owner files bankruptcy. Two days after filing Owner Quick Claims it over to another individual free of any liens. This person in turn sells it, The title search shows nothing for that owner and now another party owns the property. Meeting of creditors was last week. Until then no debtor was aware of any of this happening. What is the recourse.

Thank you for assistance.

 

[JETX]

If the bankruptcy trustee does their job, he/she should have found the quit claim and barred the bankruptcy. (However, I have found few that do the proper 'due diligence' required.... they are often just after the 'volume $$' and do minimal if any debtor research outside the filing).

So, my question to you is... which side are you on?? If you are the side of law and the creditors, contact the bankrupcty court (or the federal attorney) and bring this to their attention. What you are describing is 'bankruptcy fraud', or at least 'fraudulent conveyance to avoid creditors'.
You might also let the creditors know about it so that they can petition for a review of the bankruptcy case.

 

[djohnson]

Currently I am investigating what happened for the company that the UCC-1 is filed by. It is an electric company and they finance a heat pump and related equipment. Typically in all their bankruptcy with UCC-1 the lien stays and they either reaffirm or the bank forecloses and they either say come get it or pay it off. In this circumstance I have never seen. This company has an attorney on retainer but is ready to retire so does very little work. Basically someone else investigates and puts his case together and he signs it. The current owner is trying to get a second mortgage now and the they won't give it to him due to the lien he was never aware of when he bought the property so he wants to sue someone. The person that done the title work says that it is an illegal lien because it has a maturity date of ten years (the length of the loan) and law says after five you have to keep refiling for extention in the last six months of loan. This is true but not at the time it was originally filed and I can't find any evidence of if this was grandfathered in or not. He threatening slander suit to electric company for saying he did not do his job properly (a lot of hot air I think). Its a very large mixed up case and I am not sure where to proceed. Someone looses a large amount of money and would like for it not be my client but have never seen anything like this.