Legal Question in Bankruptcy in California

Can a BK creditor sell his note?

I was foreclosing on my 2nd TD and the borrower

filed for Chap 13. If he is dismissed then I will

carry on with my foreclosure. If he is accepted and

my arrearages go onto a payment plan for 3-5

years then I want to cash out. Will I be able to sell

my note at a discount to a willing note buyer or will

I be restricted from doing this because I am a BK

creditor? Can't I just sell the note and then send

the Assignment of TD and other related docs to

the BK Trustee informing them of a change of

creditor? Thanks in advance.


Asked on 2/14/02, 10:00 pm

1 Answer from Attorneys
Victor Hobbs Victor E. Hobbs

Re: Can a BK creditor sell his note?

Yuou may discount your note and sell it. However, make sure that you timely file your claim and any proof of the claim that the Ch. 13 Trustee requests. It may take you awhile to find a buyer of a dicounted note.

Read more
Answered on 2/14/02, 10:51 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in California