Property Successfully Auctioned Off in Chapter 7 Bankruptcy Proceedings

The owners of a one-acre property slated for residential development hit hard times and were facing foreclosure until recently. A $3.7 million mortgage had originally been obtained by the developers from a Jacksonville bank. The owners were unable to get the project underway and completed and soon found themselves behind on the mortgage payments. As time went by and the owners were not able to get up to date on payments or reach an agreement with the bank, the mortgage holder attempted to foreclose on the property. The owners fought back and pursued the only option they found to be available—they filed for Chapter 7 bankruptcy protection. The court approved their petition for protection and the foreclosure was effectively halted. The next step was to liquidate the property and use the proceeds to pay creditors including the bank that issued the original $3.7 million mortgage—this amount was negotiated down to an unreported sum. The auction to sell the property was recently conducted and the property fetched a large sum. The Jacksonville bank that pursued foreclosure is probably kicking themselves as the auction resulted in a $7.3 million sale of the property. According to the debtor trustee on the case, the funds from the auction of the property should be enough to not only pay off the bank but to cover other fines, fees and debts associated with the development project. Is Chapter 7 bankruptcy right for your individual situation? Consult with a bankruptcy attorney as soon as possible to learn more about your options for getting your finances back on track.

Chapter 7 bankruptcy protection is not only for businesses or partnerships—it's for families and individuals who have been hit by hard economic times and need a fresh start. This form of bankruptcy could leave you virtually debt free in a matter of weeks. Liens, repossession actions and foreclosures as well as incessant collection calls are stopped when you file for Chapter 7. Your creditors are subsequently negotiated with and then qualifying property and assets are liquidated to pay off the negotiated debt sums.

A Miami Bankruptcy Lawyer May Be Able to Help You

Financial stress can be debilitating and make you feel hopeless about ever getting on top of your bills and being able to more gainfully support yourself and your family. I understand what you are going through and I may be able to help. Contact my firm, The Botros Law Firm, to discuss your case and options in a free case evaluation!