Hello and thank you for allowing me the opportunity to assist you.
Question: “A DEBTOR IN BANKRUPTCY HAS A 10 INTEREST IN A PROPERTY IN FORECLOSURE. THE LENDER WENT TO SALE TODAY WITHOUT EVER FILING A MOTION FOR RELIEF OF THE AUTOMATIC STAY... AND THE BANKRUPTCY IS STILL ACTIVE, WHAT MUST THIS CLIENT DO TO REVERSE THE SALE. PROPERTY IS IN CALIFORNIA”
Answer: The client must file an “adversary proceeding” against the lender for violating the automatic stay. If the client proves that the stay was violated, then the judge will likely order that the sale be stopped, and he may also order the lender to pay the client damages.
An adversary proceeding is initiated by filing a Complaint in the bankruptcy court. It is basically a mini-lawsuit within the confines of the bankruptcy case.
Have I satisfactorily addressed your concerns? If not, then please feel free to ask for clarification.
If the information that I provided was helpful, then please remember to click the green accept button so that I will receive credit and compensation for my time. Positive feedback is always appreciated as well. Thank you and good luck!
DISCLAIMER: Please understand that the complexities of most legal problems cannot be adequately addressed in this setting, and that I am only licensed to practice law in the state of Maryland. Accordingly, you acknowledge (1) that we have not formed an attorney-client relationship, and (2) that my post is general information only and not specific legal advice.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).