COVID-19 Alert: Filing Bankruptcy While Isolating or in Quarantine

Debtor Has No Interest In Property After Foreclosure Sale and Ratification


Singh v. Shao Lin Lai, 2019 WL 4750420 (D.Md. 2019)(Hazel, J.)


Property was foreclosed on and sold in February of 2017 and was ratified on July 25, 2017 by Montgomery County Circuit Court. On September 28, 2018, the Debtor filed this present bankruptcy case. The purchasers of the property filed a Motion to Confirm Termination or Absence of the Automatic Stay with respect to the Property which the Bankruptcy Court granted holding that the bankruptcy estate had no recognizable interest in the property.


Under Maryland law, the Debtors’ interest in the property was terminated, as has the right to redeem the property by repaying the mortgage debt. No interest in the property is contained in the bankruptcy estate, which was filed more than a year after the ratification of the foreclosure sale. The Bankruptcy Court was therefore correct to find that Appellant “does not have equity” in the Property under 11 U.S.C. §362(d)(2)(A).

I utilize simple technology to allow us to meet and share documents remotely. You will get the same service as if you came into my physical office and you will be able to get the protections afforded through bankruptcy while in your own home.

 

Call or Request a Consult below to find out how. All calls are forwarded to my personal cell phone; if I am unable to answer, please leave a message and I will return your call as soon as I am able to.