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Has your tenant or borrower filed a BK? Are you Screwed?
I have recently had a borrower file a bankruptcy one week after the loan was completed. Now what? I have called my attorney David and asked him what is going on? He said the person filing the Bk is a “serial filer”. He sent me this explanation on the rules and regulations. I am not an attorney and get confused with all this legal jargon. So here is what he said. I have added my comments in Blue.
My recommendation if you are facing a BK proceeding that you work actively with a good attorney, (like David Knapper) and get ahead of the problem.
A Common Misconception About Bankruptcy
By Attorney David Knapper
Many people assume individuals can file bankruptcy only once every several years. Wrong!
Generally speaking, if a debtor suffers a premature dismissal of a bankruptcy (either because the debtor does not dot all his legally required “I’s” and/or cross some “T’s” or because the debtor voluntarily requests his bankruptcy be dismissed), but then files another bankruptcy, the later bankruptcy invokes an 11 U.S.C. § 362(a) automatic stay commanding almost all actions against this debtor be ceased, and with all actions taken in violation of this stay being not only void, but possibly ... more
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