Mastan vs. Salamon
Apr 20, 2017OUTCOME: Affirmed in our favor
Under 11 U.S.C. § 1111(b), those who hold non-recourse liens on real property are granted recourse against the bankruptcy estate upon the filing of the bankruptcy petition. Those protected are credi ... tors who have “a claim secured by a lien on property of the estate.” The panel held that a creditor does not continue to have a right of recourse after there has been a non-judicial foreclosure, so that the property is no longer part of the estate and the liens have been extinguished.
