Chapter 7 - Notice of Abandonment

Asked about 2 years ago - Basking Ridge, NJ

How likely will secured creditors object to the trustee's request to abandon the property?
What happens to judgements not recorded as liens against the property?

Attorney answers (4)

  1. Dmitry A. Braynin

    Contributor Level 7

    2

    Lawyers agree

    Answered . Generally, a trustee will abandon property which has no significant value to the creditors. I cannot speak to the likelihood of whether creditors will object, but they certainly have the right to do so if they feel differently.

    As far as judgments go, I list all judgments on Schedule F and send additional notices to creditors attorneys. These judgments are generally discharged in bankruptcy.

  2. Mary Tom

    Contributor Level 14

    1

    Lawyer agrees

    Answered . You need to ask your bankruptcy attorney about this. Most creditors will not object. Any liens remain on the property, but could be removed in a state proceeding. The lien can also be extinguished by the bankruptcy court.

    Good luck.

    MARY TOM, ESQ.
    HUNZIKER, JONES & SWEENEY, P.A.
    Wayne Plaza II
    155 Route 46 West
    Wayne, NJ 07470
    Phone No. (973) 256-0456
    Fax No. (973) 256-4784

    This message does not constitute legal advice and is for informational purposes only. This message does not... more
  3. Stuart M Nachbar

    Pro

    Contributor Level 16

    1

    Lawyer agrees

    Answered . In New Jersey, the Chapter 7 Trusteee has a right to abandon the any property (real or personal) that is part of the estate. A secured creditor will most likely not object to the abandonment as they still have the right to foreclose on the property once it is abandoned. The filing acts as a stay and no one may enter a judgement or record one for a pre-petition debt. Your bankruptcy counsel should be telling all this to you.

    The previous information is solely for informational purposes only. If you have further questions, please contact... more
  4. Mitchell Paul Goldstein

    Contributor Level 20

    1

    Lawyer agrees

    Answered . The trustee abandonment has nothing to do with the creditors and their liens. It just means that the trustee will not administer the property on behalf of the bankruptcy estate. Judgments are discharged. If they are not recorded as liens, they cannot be recorded after the petition date.

    Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice.... more

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