Builders Lien – Bankruptcy

March 28th, 2008 by Questions

We have a 1st and 2nd mortgage plus owe $10,000+ for a cash back incentive. (Cash back sum not registered on tittle). We also have a $12,000 builders lien on tittle. There is not enough equity to pay all the above. Upon sale, will builder get his money and we will then owe the bank whatever is still owing from cash back. Can this money owed then be included in a bankruptcy? Thank you,

Questions

One Response to “Builders Lien – Bankruptcy”



, A licensed trustee said:

Once the houe has been sold, the various charges will be repaid in sequence – once the money runs out people stop getting paid. Any residual amounts that you owe will be dealt with if/when you fuile for bankruptcy.

You should probably contact a trustee now – if there is going to be a shortfall (debts left over after a house sells) then you may have a difficult time selling the house – the lenders may not agree to the sale if they are not going to be repaid in full. A trustee may be able to help you with that problem too.

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