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Bankruptcy Law/bankruptcy of investment co

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Expert: - 11/3/2007


Question
QUESTION: If I hold a 1st deed of trust on a piece of property and the investment company bankrupts what happens to my 1st deed of trust

ANSWER: It depends on what chapter of bankruptcy is filed and how much equity there is in the property above your lien.

---------- FOLLOW-UP ----------

QUESTION: it would be chapter 11

Answer
Well, you haven't answered the equity question, but as long as you are fully secured, nothing will happen to your deed of trust.  The debtor will eventually file a Plan and it must provide for you to be paid the value of your lien, or for you to retain your lien.  If payments are required to be paid pursuant to your Promissory Note, those must be paid on time.  If not, you may have a basis to seek relief from the automatic stay to allow you to commence (or continue) foreclosure proceedings.

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Mark J. Markus- California Bankruptcy Attorney

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Mark J. Markus is a Los Angeles bankruptcy attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.

Experience

Visit our California bankruptcy webpage at http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on

  • Which Chapter to File,
  • business bankruptcy,
  • chapter 7 bankruptcy,
  • chapter 11 bankruptcy,
  • chapter 13 bankruptcy,
  • Do You Need a Lawyer to File Bankruptcy?
  • Frequently Asked Bankruptcy Questions

    Also visit our Los Angeles bankruptcy blog for interesting articles and much more.



    Organizations
    Central District Consumer Bankruptcy Attorneys Association (CDCBAA) Los Angeles County Bar Association (LACBA) Commercial Law & Bankruptcy Section of the Los Angeles County Bar Association Financial Lawyers Conference (FLC) National Association of Consumer Bankruptcy Attorneys (NACBA) Los Angeles Bankruptcy Forum (LABF) American Bankruptcy Institute (ABI) San Fernando Valley Bar Association (SFVBA)

    Publications
    Central District Consumer Bankruptcy Attorneys Association Newsletter September 2007 (Vol. 1, Issue 2)

    Education/Credentials
    J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here

    Awards and Honors
    AV Rated by Martindale-Hubbell (http://www.martindale.com) A+ Rated by Better Business Bureau

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