Asked 11 months ago - Basking Ridge, NJ
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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?
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.
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
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.
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