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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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The Chapter 7 Trustee has requested from the Bankruptcy Court

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The Chapter 7 Trustee has requested from the Bankruptcy Court to move for entry of an order allowing Major Lender No. 1 and Major Bank No. 2 claims to be treated as secured, but not entitled to distribution under Chapter 7. Does this mean that these banks can still foreclose on the two properties (my principal home and a rental property) outside of the Bankruptcy Court?

cfortunato :

Hi AC,

cfortunato :

A determination that debt is secured instead of unsecured does not - alone - allow a lender to foreclose the property.


 

cfortunato :

However, the fact that your case was already discharged should allow the lenders to foreclose - because a discharge eliminates the automatic stay.

Customer:

Thank you.

cfortunato and other Bankruptcy Law Specialists are ready to help you

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