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Brent Blanchard
Brent Blanchard, Bankruptcy Attorney
Category: Bankruptcy Law
Satisfied Customers: 1975
Experience:  Twelve years experience in all aspects of debtor & creditor BK.
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I filed for full bankruptcy in 2009. Foreclosure procedings

Resolved Question:

I filed for full bankruptcy in 2009. Foreclosure procedings on my home just started. I received legal paper work showing part of my property for this home was part of a Quick Take due to eminent domain and there is a sum of money for the acquition sitting with the County Attorneys office. Am I intilted to this money or does the mortgage co have full rights to it. I surrendered the property in the bankruptcy as well. The mortgage co. will not give me any information as they are protecting their interest and advised me to contact a realestate lawyer. My bankruptcy lawyer didn't think the mortgage co. would sign off on the check as their name would be listed on it as well. I don't want to accept the money and get 1099 for money that will just go back to the mortgage co. No one seems to know what to do with this money that is sitting there.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  GoLaw replied 7 years ago.
Thank you for using Just Answer. In order to respond to your inquiry, I need to know whether the bankruptcy is still open and when the eminent domain taking occurred.
Customer: replied 7 years ago.
The bankruptcy was stayed 7/2009 and debt to mortgage co. was discharged. The Condemnation was was filed 12-3-2009 and property/parcel of land taken 1-18-2010. I just received 2-2-2010 notice from Mortgage Co. attorney's office the notice of intent to foreclose. The amount for the condemnation is only a partial amount as it is not a full acquition of the property and therefore would not be full payment for the property.
Expert:  GoLaw replied 7 years ago.
I am going to opt out so that someone from our bankruptcy section can assist you.
Expert:  Brent Blanchard replied 7 years ago.
Assets which come into possession of the Debtor within 180 days of filing bankruptcy get taken back into the BK estate, even if the case is closed already. There's a routine mechanism to re-open cases for that (and to add newly-discovered creditors, for that matter).

You will need to get a real consultation with your BK attorney and get what you paid for from the original deal. This is NOT (yet) a contested or adversarial matter, but something which might require amendment of the BK schedules.

Depending on the timing, the compensation for the taking of the land most likely goes with possession of the land, rather than to the "last owner" the county knew of. The BK proceedings regarding who gets title to the land will take precedence over what was done on the county level--if the title has been transferred by some action in the BK court. Sometimes that happens by moving out and signing a deed prepared by the creditor. More often, the creditor just starts or re-starts the foreclosure process.

Sounds like the surrender of the property in the BK case has not been fully accomplished yet. It is pretty common for the creditor to take some time to start or re-start foreclosure proceedings, so Debtors often "own" land they are not paying for for quite a few months before they get the boot.

Please consult with a local attorney regarding the condemnation/taking. It might not be "income" because it's compensation for losing a part of the land to governmental takings.

Thank you.

Brent Blanchard, Bankruptcy Attorney
Category: Bankruptcy Law
Satisfied Customers: 1975
Experience: Twelve years experience in all aspects of debtor & creditor BK.
Brent Blanchard and other Bankruptcy Law Specialists are ready to help you
Expert:  Brent Blanchard replied 7 years ago.
I'm having a reminder e-mail sent since you're no on this board tonight and the question is due to "time out" soon.