Filing A NOD

[Taxing Matters]

hi des,

when you say "adjudicated as an ip", i am interpreting that to mean whether the debtor is gonna be able to throw the bk out of court

There are two types of bankruptcy petitions: the voluntary petition, in which the debtor files for protection from creditors, and an involuntary petition, in which the creditors force the debtor to bankruptcy.

 

[TrustUser]

thanks tm, this one is the involuntary type. i think what des was asking me is whether there has been a ruling on whether the debtor can get rid of the bankruptcy being forced upon him.

what i tried to tell him is that while i am not positive, i think we have moved beyond that stage. such that the debtor lost that round. with what des has said so far, i do highly suspect the debtor to reorganize, IF THE COURTS ALLOW IT.

 

[TrustUser]

from what i am gleaning, it does not look like a reorganization will be occurring. i am guessing the debtor does not qualify, for one reason or another

 

[despritfreya]

from what i am gleaning, it does not look like a reorganization will be occurring. i am guessing the debtor does not qualify, for one reason or another

Then, your discussions regarding the property will continue to be with the Chapter 7 Trustee and/or his/her attorney.

Des.

 

[TrustUser]

i am curious. a fellow investor on my loan is also an investor on another loan. the trustee is considering "abandoning" this other property, if that is the correct term. if this occurs, does my fellow investor need to go thru the typical foreclosure proceedings ? i have seen many of the CAR sales agreements on the properties that have been okayed by the judge to sell. they all indicate the trustee as the seller, which seems to indicate that the trustee is the LEGAL owner of the property ? btw, we were told that "my property" has enough value in it, and they intend to sell that one. so things are progressing.

 

[Taxing Matters]

If the trustee abandons the property then that property is no longer part of the bankruptcy estate and the protection of the bankrtupcy automatic stay would not protect the debtor from having a creditor attach that asset to get paid. Of course, in general if property is abandoned by the trustee that suggests little to no equity above the claims of secured creditors, so it is mainly the secured creditors that might have an interest it taking the property and selling it.

 

[despritfreya]

TM is correct. Once the property is abandoned, the lienholder may proceed under State law to take back the collateral. As to the Court approved sale of other property, the Trustee, in his capacity as Trustee for the Bankruptcy Estate, is the "owner" since he controls the property of the estate. Glad to read matters are moving along. In the end, you will be paid.

Des.

 

[TrustUser]

okay, it sounds like he will still have to go thru formal foreclosure proceedings, which i think is 120 days or so. he is a secured investor. i was hoping he might have some sort of abbreviated process, if the trustee had been made the new owner.

 

[TrustUser]

also, i think he had a foreclosure proceedings started on it awhile back, and it was never stopped by the trustee.

if so, can he just simply allow it to proceed ? or does he need to start a new one, in order for it to legally stick ?

 

[Taxing Matters]

also, i think he had a foreclosure proceedings started on it awhile back, and it was never stopped by the trustee.

if so, can he just simply allow it to proceed ? or does he need to start a new one, in order for it to legally stick ?

That depends on the law and court rules of the state in which the foreclosure is taking place. The first thing to check is the state court file for the foreclosure and see how the court dealt with the notice of the bankruptcy. Did it dismiss the foreclosure or did it simply stay proceedings pending the bankruptcy outcome? Even if its the latter, given the time that has elapsed, he's likely to have to do some of the steps of the foreclosure over again because there are usually time limits for what follows that have now been missed.

 

[TrustUser]

thanks tm,

i passed the info along. if it was me, i would probably start over, and not take any chances

 

[Taxing Matters]

thanks tm,

i passed the info along. if it was me, i would probably start over, and not take any chances

I would too, unless there are any statute of limitations concerns regarding collecting any deficiency after the sale or concerns that the lien may have become stale.

 

[TrustUser]

i think the trustee is releasing the property back to us. i think mainly because there is a tenant in the property, and most likely will require eviction procedures. nice waste of 6 months

 

[TrustUser]

i have never seen this before. but i do know it is because of divorce proceedings. no amounts are on the liens. it just says A pending Court Action as disclosed by a recorded notice. . .Affecting real property Recorded : December 4, 2020 Recording No.:2020000709774, of Official Records

 

[adjusterjack]

So?

What does this have to do with you?

And without the state and the entire document, nobody's going to make any sense of it.