QUESTION
can a second mortgage on a commercial property held by the SBA be included in a chapter 7 bankruptcy and discharged?
Asked on Jul 17th, 2017 on Bankruptcy - California
More details to this question:
The second is for $275,000 and is behind a first of $450,000. Both the first and second is in default. The property is values at about $700,000.
1 ANSWER
Bankruptcy Attorney serving Burbank, CA
Partner at
Law Office of Mark J. Markus
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3 Awards
The debt MUST be included, and it would be discharged. However, the lien would remain against the property.
For more information, see my article on what happens to mortgages after bankruptcy discharge here: https://www.bklaw.com/bankruptcy-blog/2013/05/mortgage-liens-in-bankruptcy/
Answered on Jul 17th, 2017 at 3:11 PM