Frequently when your debtor files for bankruptcy, they seek to avoid the Judgement that you have on their house through the Bankruptcy Court procedure because it impairs their homestead exemption. While the homestead exemption in Massachusetts might be very high, in the current real estate market, there is frequently more equity than a debtor will admit to the Bankruptcy Court in their bankruptcy petition.
Cellai Law Offices, P.C. has been successful in challenging bankrupt debtor’s valuation of their homes in defense of a judicial lien surviving bankruptcy. Depending upon your judicial lien debtor’s house, location and condition, you could come out of an account debtor’s bankrupt where you have a judicial lien on debtor’s house with your pre-existing secured judicial lien wholly or partially intact.
If you think that the value of your account debtor’s house exceeds the value of the homestead and superior secured liens, you could quite possible come out the other side of a debtor’s bankruptcy with a surviving valid lien.
Cellai Succeeds in Pursuing Assets
Cellai Law Offices, P.C. has had great success in pursuing transferors and transferees of assets.
Cellai Law Offices, P.C. pursued a father and daughter in a fraudulent conveyance action the father and daughter sought to transfer the house between themselves for the daughter merely paying on the outstanding mortgage in the father’s name.
The court rejected the father/daughter transfer because the transfer amounted to a transfer of an asset for half the actual value.
The Court entered Judgement against both the father and the daughter in the full amount of the debt, plus interest, costs and attorney fees.