Posted on: 06th Oct, 2009 12:34 pm
Myhusband is self-employed and owns a roofing company (yes, it is incorporated). We built a shop for the business and financed it in my husband's business name. We then did a quick deed to ourselves personally for tax purposes. We then had to file bankruptcy personally and included the shop...which we are giving back to the bank. The bank is now saying that they can put a lien on his accounts receivable b/c the shop is not protected under the bankruptcy laws. Can they do this?
Hi Helen,
If the debt was dischared in bankruptcy, you are not personally liable for it. This means the bank cannot come after you to recover the outstanding loan amount. They can take over the possession of the shop as it was used as a security for the loan. But apart from that, they cannot put lien on your husband's personal accounts. However, it is better to consult local bankruptcy attorney as the bankruptcy laws do vary from one state to another.
If the debt was dischared in bankruptcy, you are not personally liable for it. This means the bank cannot come after you to recover the outstanding loan amount. They can take over the possession of the shop as it was used as a security for the loan. But apart from that, they cannot put lien on your husband's personal accounts. However, it is better to consult local bankruptcy attorney as the bankruptcy laws do vary from one state to another.
>>Can they do this?
Yes. You're not allowed to Quit Claim a Deed like that, and separate it from the Note - the Deed is the collateral for the Note. You definately need to consult with an Attorney.
Yes. You're not allowed to Quit Claim a Deed like that, and separate it from the Note - the Deed is the collateral for the Note. You definately need to consult with an Attorney.
you should cunsult with a bankruptcy attorney.