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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2830
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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"liens to follow proceeds" what does this phrase mean?

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"liens to follow proceeds"
what does this phrase mean?

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

Can you provide the full context?

Terry L. :

I see that you are offline. I'll change this to Q&A and await your response.

Terry L. :

I'll follow up once Received.
Thanks
Terry

Customer: replied 3 years ago.

In a Chapter 7 Bankruptcy case, a document titled: "TRUSTEE'S APPLICATION TO SELL PROPERTY OF THE ESTATE FREE AND CLEAR OF ALL LIENS, CLAIMS AND ENCUMBRANCES WITH LIENS TO FOLLOW PROCEEDS AND NOTICE TO CREDITORS"


 


Item 4 states: Liens, if any, will follow proceeds. Trustee is not aware of any liens.


 


The property being sold is real estate, which has a bank note with the property as security.


 

This means that the trustee is going to sell property. If there is a secured lien, such as a mortgage, that will be paid, then the trustee will use the proceeds to pay the unsecured creditors in the chapter 7 case. It's just a blanket statement, that's all. Any further questions?
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