Lien holder and bankruptcy Personal Bankruptcy

carigirl · Mar 4, 2009

Hi,
I sold a business and a security agreement was made where the buyer would pay me for 4 months installments for a portion of the money. He made 1payment and refused the rest. I took him to court and the judge ordered I retain assets in the business for the ordered amount. We followed all rules with the sheriff etc and obtained the assets as per the secured note. Two days after retaining the assets ,before I can sell them to recover my money, the defendent files bankruptcy chapter 7. What now happens to me since I already have the assets in my possesion. Can I sell them or does he take the assets back? What should I do...please advise...Thanks

Theresagail · Mar 13, 2009

Don’t sale anything and don’t release anything—You need to file for relief from the automatic stay or just wait till the bankruptcy is either dismissed or discharged—you may need to go to the 341 hearing—you should be listed as a creditor—he should have listed the property you have, he is to list his intentions (surrender (you keep) or retain(he gets back) you can also call his attorney to see what his intentions are – if they are to surrender—you will have to get the relief from the stay before you sale or wait. But Don’t do anything while he is under the protection of Bankruptcy you will get a lots of trouble—because there is a possibility the trustee may take the assets from everyone to pay creditors.

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Lien holder and bankruptcy Personal Bankruptcy

carigirl Law Topic Starter New Member

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