Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
1) Business debts cannot be discharged in a Chapter 7 Bankruptcy.
2) Title insurance protects the person whose name is XXXXX XXXXX title - not any bank that lends money that is secured by the property that is insured.
3) Yes - the fact that the property is owned as tenants by the entirety would prevent the bank from taking the property (which is why the lender tried to also get your wife's signature on the loan).
Since I signed the personal guaranty for the line of credit business loan, but filed a personal Chapter 7. Is it fair to say that the amount owed to the bank was discharged under my personal chapter 7? Also, would the bank have a valid claim against the Title Company for not picking up the clerical/human error of recording the wrong condo unit number on the property lien and county records?
1) Yes - your personal obligation to pay this business loan was discharged in your personal Chapter 7 Bankruptcy.
2) No - the bank does not have a valid claim against the title insurance company. Only the persons whose names are XXXXX XXXXX title (your and your wife) can file a claim against a title insurance company.