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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Bankruptcy Stay Posted by Rick Harmon on April 11, 2003 at 12:11 AM In Reply to: Bankruptcy Stay posted by David on April 11, 2003 at 7:54 AM David - I think this is a bad idea, technically, legally and from a business practices standpoint. BK affects ALL transactions concerning the bankrupt debtor's assets because they have been placed until control of court appointed BK trustee. If the BK is dismissed by court for any reason, even at request of debtor, then any buyer would want a certified copy of court dismissal order so as to avoid any further loose ends for title company. I don't think it's a good idea to solicite your own debtor, particiularly one who has defaulted and you've gone this far with. Your motives, right or wrong, would appear to any court that acquiring the property was always your intention, and that will never get you any sympathy in an already consumer-oriented court systems should the seller/debtor/litigatant place you into his cross hairs later. Also, deed-in-lieu creditors get the privilege of paying all junior secured creditors in many, if not most, instances. Ways around that, too, but how much time do you want to commit to this deal. Lastly, there is a creditor's fiduciary duty that you have to the debtor that you can't sidestep. I think you're buyer a lot of exposure trouble for a small gain. If it reverts back to you via trustee sale, its yours. If someone else gets it, you'll probably be made whole and are free to go on to the next deal. Best of luck Rick Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : David - : I think this is a bad idea, technically, legally and from a business practices standpoint. : BK affects ALL transactions concerning the bankrupt debtor's assets because they have been placed until control of court appointed BK trustee. : If the BK is dismissed by court for any reason, even at request of debtor, then any buyer would want a certified copy of court dismissal order so as : to avoid any further loose ends for title company. : I don't think it's a good idea to solicite your own debtor, particiularly one who has defaulted and you've gone this far with. Your motives, right or wrong, : would appear to any court that acquiring the property was always your intention, and that will never get you any sympathy in an already consumer-oriented : court systems should the seller/debtor/litigatant place you into his cross hairs later. Also, deed-in-lieu creditors get the privilege of paying all junior : secured creditors in many, if not most, instances. Ways around that, too, but how much time do you want to commit to this deal. : Lastly, there is a creditor's fiduciary duty that you have to the debtor that you can't sidestep. I think you're buyer a lot of exposure trouble for a small gain. : If it reverts back to you via trustee sale, its yours. If someone else gets it, you'll probably be made whole and are free to go on to the next deal. : Best of luck : Rick Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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