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socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 38257
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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We are a TX creditor company in adv bankruptcy matter and we

Resolved Question:

We are a TX creditor company in adv bankruptcy matter and we want to know the following:

1) Are we entitled to our expected profit on the project when making a
removables claim?

2) What happens to our claim when the bank forecloses on the property if
our lien is a constitutional, and not a statutory lien?

3) Are we entitled to attorney's fees when foreclosing on our lien?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 5 years ago.
1) Are we entitled to our expected profit on the project when making a
removables claim?


A: No. You're entitled to what the court orders, which could be something or nothing. If you have a secured interest in the debtor's property, then you may be able to sell the collateral to get some of the money back. Otherwise, you are probably standing in line with everyone else, waiting to get paid.

2) What happens to our claim when the bank forecloses on the property if
our lien is a constitutional, and not a statutory lien?

A: The bankruptcy law does not recognize this distinction in character, when considering the dischargeability of a debt.

3) Are we entitled to attorney's fees when foreclosing on our lien?

A: No. A foreclosure entitles you to the value of the collateral. A bankruptcy debtor no longer has any personal obligation to pay any portion of a contractual debt.

Hope this helps.

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