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