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cortrightlaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 513
Experience:  Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
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My question pertains to Chapter 11 bankruptcies. Ive recently

Resolved Question:

My question pertains to Chapter 11 bankruptcies.

I've recently acquired 10 properties via a quit claim deed.
The rents I make from these properties is far less than the house payments owed.
If I file a Chapter 11, can I force the lenders to take smaller monthly payments through my Chapter 11 plan?

In a Chapter 13, the plan requires I make regular house payments in full.
I am wondering if the lender can request to be released from the plan for the following reasons:
1. I'm not the original borrower (not on loan--only on title)
2. They are not getting the full house payment each month.

Does my being on title and being in a chapter 11 plan force a lender to accept my payment plan or can they dispute it and be released from my reorganization?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cortrightlaw replied 5 years ago.

cortrightlaw : I had a potential client come into my office last year and I refused to take the case because I believe that both the lenders and the US trustee would consider this abuse of the bankruptcy process and not stand for it. It would be different if you were the original owner and debtor of the properties but actually you are not even on any of the notes.

There is no intent to abuse the bankruptcy process. However, if the lender considers it abuse, what happens next? Does the judge decide if I can move forward with my plan?


If the lender is allowed to foreclose it will lose $100,000 due to declining property values. Allowing me to make some payments gives the market time to recover. Waiting is a good thing for everyone unless they want to write off their losses immediately.

cortrightlaw : Most likely they will oppose your motions to value the properties, additionally you need to rember that in a chapter 11 you are attempting to get the vote of your creditors to approve your plan.

I see. So if I file a motion to value the properties and come up with a low payment they will likely object to everything. Does a judge decide what happens if we can't agree?

cortrightlaw :

A judge can cram down the value over their objection but I think they are going to come after you fairly hard. Even if you succeed on the motions then they become one of your unsecured creditors and they get a vote on whether or not to approve your reorganization plan

cortrightlaw :

Have I satisfactorily answered your question? If I have please remember to click the GREEN ACCEPT BUTTON so that I will receive credit and compensation for my time (doing so does not end our discussion), i will gladly clarify my response or respond to follow up questions if needed.

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