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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 12206
Experience:  JD, MBA
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A DEBTOR IN BANKRUPTCY HAS A 10 INTEREST IN A PROPERTY IN FORECLOSURE.

Resolved Question:

A DEBTOR IN BANKRUPTCY HAS A 10 INTEREST IN A PROPERTY IN FORECLOSURE. THE LENDER WENT TO SALE TODAY WITHOUT EVER FILING A MOTION FOR RELIEF OF THE AUTOMATIC STAY... AND THE BANKRUPTCY IS STILL ACTIVE, WHAT MUST THIS CLIENT DO TO REVERSE THE SALE. PROPERTY IS IN CALIFORNIA
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  TJ, Esq. replied 8 years ago.

Hello and thank you for allowing me the opportunity to assist you.

Question: “A DEBTOR IN BANKRUPTCY HAS A 10 INTEREST IN A PROPERTY IN FORECLOSURE. THE LENDER WENT TO SALE TODAY WITHOUT EVER FILING A MOTION FOR RELIEF OF THE AUTOMATIC STAY... AND THE BANKRUPTCY IS STILL ACTIVE, WHAT MUST THIS CLIENT DO TO REVERSE THE SALE. PROPERTY IS IN CALIFORNIA”

Answer: The client must file an “adversary proceeding” against the lender for violating the automatic stay. If the client proves that the stay was violated, then the judge will likely order that the sale be stopped, and he may also order the lender to pay the client damages.

An adversary proceeding is initiated by filing a Complaint in the bankruptcy court. It is basically a mini-lawsuit within the confines of the bankruptcy case.

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DISCLAIMER: Please understand that the complexities of most legal problems cannot be adequately addressed in this setting, and that I am only licensed to practice law in the state of Maryland. Accordingly, you acknowledge (1) that we have not formed an attorney-client relationship, and (2) that my post is general information only and not specific legal advice.

TJ, Esq. and other Bankruptcy Law Specialists are ready to help you
Customer: replied 8 years ago.
THANKS SO MUCH, BUT THE INDIVIDUAL THAT WAS FORECLOSED ON WAS A CO DEBTOR, NOT THE PARTY WHO FILED THE BANKRUPTCY. AND CAN THIS BE DONE PRO PER ( BY THE CLIENT THEMSELVES) OPEN AND SHUT CASE , CLIENT HAS COPIES ETC OF THE BK SHOWING ACTIVE AFTER THE SALE DATE AND THERE WAS NEVER A MOTION FOR RELIEF OF THE AUTOMATIC STAY.

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