Bronx, Westchester & Eastchester
The Intersection of Bankruptcy Law and Real Estate Law
While there are many attorneys with real estate experience and many attorneys with experience in bankruptcy, there are far fewer attorneys who have years of experience with both.
We understand the interplay of bankruptcy law and real estate, and we are uniquely suited to serve our bankruptcy clients who own real estate and our real estate clients who face issues created by prior or current bankruptcy filings.
Transfers or Refinances Before, During, and After Bankruptcy
If you own real property and are considering filing for bankruptcy, you must consult with an experienced New York bankruptcy attorney who fully understands the effect of filing a Chapter 7 or Chapter 13 on your ability to sell, refinance, or even transfer your real property.
This is critical regardless of whether this will be done before, during, or after the bankruptcy filing. The rules and issues are complex and should be fully explained to you before you make any such moves.
Judgment Liens and Lien Avoidance
Your bankruptcy attorney should also understand the effect a judgment may have on title to your property and must also understand under what circumstances a judgment lien on your property may be avoided in bankruptcy.
Many real estate closings are delayed or even called off entirely because judgment liens (which should have been avoided by a separate motion in bankruptcy) were allowed to survive because the attorney did not understand how a bankruptcy discharge works and what it can and cannot do.
In other words, an experienced bankruptcy attorney will know that judgment liens attached to your real property will ride through the bankruptcy, notwithstanding the discharge, unless they are specifically dealt with during the bankruptcy.
In fact, a bankruptcy attorney has many tools available to him, but unless he knows to use them while your case is open, it may be too late, too time-consuming or too expensive to correct the situation.
Avoidance of a Second Mortgage Lien
Another very powerful tool available in bankruptcy is the ability to avoid a second mortgage lien on real estate when the pay-off on the first mortgage exceeds the market value of the property.
Generally speaking, this can only be done in the context of a Chapter 13 filing.
Therefore, when considering whether to file a Chapter 7 or Chapter 13, your attorney must look to see if this tool may be used for your benefit. If so, this can save you thousands and maybe tens of thousands!
A Good Bankruptcy Attorney Must Know Foreclosure Law
Your bankruptcy attorney should also be fully familiar with the New York State foreclosure process and must understand the mortgage documentation requirements that go with it.
When deciding which attorney to hire, make certain that you choose someone who is capable of analyzing the lender’s documents and can quickly identify any violations of your rights or defects in the lender’s paperwork, which may later be used to your advantage in the bankruptcy court.
Loan Modification Relief from Mortgage Document Abuse
Many debtors (including several of our clients) have been able to successfully litigate against their mortgage lender in bankruptcy court as a result of the attorney’s identification of issues or defects contained in the lender’s documents.
As a result of these contested proceedings in bankruptcy court, many debtors have obtained favorable modifications of their mortgages (even when they may not have otherwise qualified) and/or principal reductions, which have put them in a substantially improved positions.
Visit Our WebSite Devoted to Bankruptcy
If you would like more information on bankruptcy and our firm, please follow the link below which will take you to our other website which is devoted exclusively to our bankruptcy practice and which will identify some of our notable Chapter 13 cases. www.bronxwestchesterbankruptcylawyer.com/notable-cases/