Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
If you have a note secured by a trust deed against real property, then your recourse is to foreclose on the property.
You state that the maker declines to renew the note. My comment would be "so what?" If the note is due and the maker doesn't pay, then foreclose on the property.
If the property is listed as an asset in a personal bankruptcy, then you must ask the bankruptcy court to lift the automatic stay so that you can commence the foreclosure. I asume that this means that the partner has a joint interest in the property with the LLC. If so, then it simply means that your note is secured only by the LLC's interest, which could make complete recovery in foreclosure difficult, because there may be insufficient equity in the property to pay back your investment.
Hope this helps.
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