Legal Question in Bankruptcy in New York
CashDeposit from a failed real property sale
When a deposit is forfeited on the sale of real property that is being sold in bankruptcy, is that deposit considered unencumbered funds (available for administrative claims) or is it the secured creditors (mortgage holders) first ?
Thank you
Asked on 3/06/03, 2:32 pm
1 Answer from Attorneys
Lance Spodek
Lance Roger Spodek, P.C.
Re: CashDeposit from a failed real property sale
It would appear to be general estate funds subject to the priority order set forth in the Bankruptcy Code. I see no reason from the facts stated why the secured creditor would have a special claim to those funds.
Answered on 3/07/03, 5:03 pm
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