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Have a civil action against a mortgage servicer that has made

off with $56,000.00, and the...
Have a civil action against a mortgage servicer that has made off with $56,000.00, and the mortgage servicer GMAC has now filed chapter 11, what are my legal grounds going forward, civil action was in place befor bankruptcy filing.
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Answered in 12 minutes by:
7/6/2012
grantlawpc
grantlawpc, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31
Experience: United States Bankruptcy Code: Chapter 11 Business Attorney; Restructuring and Recoveries
Verified
Yes, it sounds like the servicer's Chapter put an automatic stay on the lawsuit. You have 90 days from the date of bankruptcy to remove the action to federal court if that is your lawyer's strategy.

However, the good news is that I find that once a bankruptcy is filed, arguments over the merits of your lawsuit tend to diminish and that the focus turns to how the claim will be funded (almost presuming that the case is valid).

You need to file a proof of claim before the bar date in the bankruptcy case. Your lawyer can help you. If not, try www.fileaproofofclaim.com

If there is no objection to your proof of claim, it is allowed by the bankruptcy court -- having the same effect as if you had obtained a judgment in state court.

There will almost certainly be an Official Committee of Unsecured Creditors representing people like you. The good thing is that their lawyer is funded by the bankruptcy estate. Now, it is not representing you individually, but it is representing the unsecured creditor body.

The real question is how much is going to be available for unsecured creditors 100%? 1%?

If the debtor is going to object to your claim, then you should go ahead and file a motion to lift the automatic stay to proceed with the state court litigation. Any bankruptcy lawyer can help you with this. However, if the word on the street that unsecured creditors are getting small percentages, it might not be economical to bother getting the judgment.

Did I miss anything?
Let me know if you have any follow-up questions.

R
grantlawpc
grantlawpc, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31
Experience: United States Bankruptcy Code: Chapter 11 Business Attorney; Restructuring and Recoveries
Verified
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grantlawpc
grantlawpc, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31
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Experience: United States Bankruptcy Code: Chapter 11 Business Attorney; Restructuring and Recoveries

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