When a loan for personal property or real estate goes into default – and the borrower files for bankruptcy – lenders should take immediate action to protect the collateral. There are several paths a bankruptcy case can take, which can become difficult to manage without strict attention to milestones and deadlines. Our knowledgeable team of bankruptcy attorneys will counsel you on your options, while looking after your interests and protecting your image within the communities you serve.
All creditors who wish to be paid on a debt secured by real or personal property from the chapter 13 estate must first file a proof of claim. Filing deadlines are strict, and must adhere to the official forms of the court. Failure to timely file within the appropriate bankruptcy court – or filing inaccurately - may invalidate your claim, and subject your investment to unnecessary risk and potential fines from the court.
If a debtor fails to make payments to the trustee or the creditor per the plan, or if there is a lack of adequate protection, we will file a motion for relief on your behalf. Our team of attorneys and legal assistants always verify local rules regarding filing, service requirements, and additional requirements of the judge assigned to the case.
When borrowers seek to keep property that secures a debt, they must typically enter into an agreement that reaffirms the debt. This agreement survives the bankruptcy, by re-establishing a payment schedule that continues even after the bankruptcy is over. We’ll help you assess each borrower’s situation to determine your optimal approach.
Whether the borrower wishes to forfeit (surrender) their property, sign a reaffirmation agreement, or continue under the terms of the mortgage and note, we will carefully review the proposed treatment plan and evaluate whether your rights are thoroughly protected. If the situation warrants, we will file a timely objection to the plan and/or attend a confirmation hearing to present our opposition to the court.