QUESTION
What does an automatic stay cover on my bankruptcy file?
Asked on Jul 20th, 2011 on Bankruptcy - Virginia
More details to this question:
I file personal chapter 13 bankrupcy and im 100% owner of the company that ownes commercial real estate. My question is does automatic stay extend to the commercial properties and stop the foreclosure (sheriff sale) ?
6 ANSWERS
Why did your attorney that filed the Chapter 13 not explain that to you?
Answered on Jun 26th, 2013 at 3:03 AM
Trusts and Estates Attorney serving Jacksonville, FL
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Law Office of David M. Goldman PLLC
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Only if you are personally a party to the lawsuit
Answered on Jul 21st, 2011 at 1:06 PM
Bankruptcy Attorney serving Hayward, CA
at
Carballo Law Offices
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Very interesting and sophisticated question! If the company you own is a corporation or LLC and you are a shareholder then the automatic stay in your personal bankruptcy case does not protect property owned by the corporation or LLC. You have no ownership interest in the property directly. You own the legal entity that owns the real estate. I recently had to research is this issue (in a Chapter 7 case) and would love to have bankruptcy lawyer out there tell me I am wrong and give me a citation supporting that view. However, if you have personal liability for the debts of the corporation or LLC you could argue that the Chapter 13 co-debtor stay applies. Your question certainly requires that you consult with your own lawyer (hopefully your have one since you are doing a Chapter 13 and it would be insane not to have one in a Chapter 13 case).
Answered on Jul 21st, 2011 at 11:52 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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The automatic stay pertains to property of the estate. A corporation's assets are not subject to the automatic stay of an individual's filing.
Answered on Jul 21st, 2011 at 10:57 AM
Glen Edward Ashman
If the properties are owned by a corporation and you are not personally on the debt, your individual filing has no effect on that foreclosure.
Answered on Jul 21st, 2011 at 9:35 AM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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Yes, if you have any personal liability.
Answered on Jul 21st, 2011 at 9:34 AM