I need legal advice! How do laws of real estate work if bankrupccy comes to effect?

If I have a collateral on a property from a person whom I have lended money to and that person claims bankrupcy, how can I claim the my collateral property? Will the property enter the bankrupcy and would I be able to foreclose on the peoperty?I need legal advice! How do laws of real estate work if bankrupccy comes to effect?
Submit a claim to the court BEFORE the person claims bankruptcy.


That way you will be first in line for any payouts.


You don't say how much you loaned or if other lenders are involved.


If the person claims bankruptcy there will be a meeting of creditors and without a claim you won't be invited.I need legal advice! How do laws of real estate work if bankrupccy comes to effect?
When the person claims bankruptcy, as a creditor you will be notified of his filing -- if he lists you as a creditor. Have you filed your claim or paperwork with the clerk of the court in your county so it is a matter of public record?


Is he current on his payments with you? If not, go ahead and file for a lien or foreclosure on the property.


With the new bankruptcy laws it is hard to have your debts discharged. Rather now the person more than likely will have to work out a repayment plan supervised by the court.


Most all areas have an attorney's referral service, where you can call in and get a referral for a free 15 or 30 minute consultation. Check with your local bar or state bar association to see if you can take advantage of this service.


Protect your interest!!!!! Good luck.