Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
1) Would properties go into bankruptcy of one person?
A: Bankruptcy estate would contain the debtor's interest in the property. Trustee can request that the court permit the property's sale, and the net proceeds divided between the debtor's estate and the nonbankruptcy owner. Court has discretion to balance the hardships, but if this is a rental property, then the court would almost certainly permit the sale.
(2) What happens to other half owned by other person & not pd?
A: See above.
(3) Wd prop default to bank for foreclosure or stay in bankruptcy ct for trustee to sell?
A: Either or. BotXXXXX XXXXXne is that the property would be sold and the lender paid off, with the remainding equity, less the nonbankruptcy owner's portion, to the bankruptcy trustee to pay the debtor's creditors.
(4) Is default judgement possible if can't sell for mortgage amt?
A: Yes. A "deficiency" judgment is permitted under Hawaii law for the balance of the mortgage over fair market value of the foreclosed property.
(5) Same bk holds mortgage for non-bankrupt person's personal residence. Can bk foreclose on personal residence?
A: If the bank obtains a deficiency judgment against the nonbankrupty owner, then depending upon the laws of the State in which the personal residence is located, then it is possible to have the sheriff sell the property to satisfy the deficiency judgment. This is not, however, a "foreclosure." It's a sheriff's execution sale.
(6) Wd it be a good idea to pay off small bal owed on personal residence so same bank wd not hold mortgage?
A: Doesn't really matter, in my view, unless holding mortgages on both investment and personal properties has soe linkage stated in the respective security agreements (such as a universal default -- which I would think highly unlikely, but you'll have to read the mortgage instruments).
Hope this helps.
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