SBA loan with recorded 2nd deed of trust on primary residence - am I
Posted: Mon Sep 18, 2017 4:14 pm
I was going to file a chapter 7 for someone who wants to get out of their
business obligations and then this SBA Recorded Deed of Trust popped up.
Ouch. $360K. It takes up about $50K of the equity. They have $100,000
homestead otherwise.
I seem to remember the SBA releasing such liens voluntarily after a Chapter
7, but I could have just dreamed that. Am I dreaming, or in this scenario
is the SBA like Chase Bank and they're just going to stay put and then
foreclose when the nonBK partner defaults?
They have too much debt (all business except for first mortgage) for a
Chapter 13. Can I do anything with this in a Chapter 11 to get this lien
off?
Holly Roark
Certified Bankruptcy Specialist*
*and Sports Lawyer*
holly@roarklawoffices.com **primary email address**
www.roarklawoffices.com
*Central District of California & District of Idaho* - Consumer Bankruptcy
Attorney
1875 Century Park East, Suite 600 Los Angeles, CA 90067
T (310) 553-2600; F (310) 553-2601
*By State Bar of California Board of Legal Specialization
I was going to file a chapter 7 for someone who wants to get out of their business obligations and then this SBA Recorded Deed of Trust popped up. Ouch. $360K. It takes up about $50K of the equity. They have $100,000 homestead otherwise.I seem to remember the SBA releasing such liens voluntarily after a Chapter 7, but I could have just dreamed that. Am I dreaming, or in this scenario is the SBA like Chase Bank and they're just going to stay put and then foreclose when the nonBK partner defaults?They have too much debt (all business except for first mortgage) for a Chapter 13. Can I do anything with this in a Chapter 11 to get this lien off?Holly RoarkCertified Bankruptcy Specialist*and Sports Lawyer
holly@roarklawoffices.com**primary email address**
www.roarklawoffices.com
Central District of California & District of Idaho - Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600 Los Angeles, CA 90067T (310) 553-2600; F (310) 553-2601
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