Legal Question in Bankruptcy in New York

Chapter 7 Protection

My Company owns real property - vacant land under construction worth approximately 25million.

My Company owes to a commercial lender about 15million in principal and mezz lender about 5 million in principal.

There is no cash flow from the vacant property. The loans have a personal guarantee of the owners.

Is Chapter 7 the right path to take to protect foreclosure?

Is it legal for bank to fund half of construction loan in first two years, then the loan matures and they decide that due to market conditions the project does not make sense for them, they do not extend the loan and start a foreclosure proceeding.


Asked on 5/31/08, 10:35 am

2 Answers from Attorneys
Nancy Delain Delain Law Office, PLLC

Re: Chapter 7 Protection

I BELIEVE YOU HAVE RETAINED AN ATTORNEY ALREADY.

Your facts are too similar to another question I answered wherein the questioner stated that s/he has an attorney (see http://www.lawguru.com/cgi/bbs/message.php?i=75464066&view=q ). You MUST talk with your attorney about your legal matters. ATTORNEYS WHOM YOU HAVE NOT RETAINED CANNOT ETHICALLY RESPOND TO THE SUBSTANCE OF THIS MATTER SINCE YOU ALREADY HAVE AN ATTORNEY RETAINED.

Even if you didn't already have an attorney, this subject matter is WAY too complex for this board.

TALK TO YOUR OWN LAWYER!!!!!!!!!!!!!!!!!!!!!!

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

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Answered on 5/31/08, 11:35 am
Nancy Delain Delain Law Office, PLLC

Re: Chapter 7 Protection

Sorry; the person with the lawyer was another question.

However, the rest of my answer stands; you need to hire a lawyer to represent you in this matter, since it is WAY too complex for this board.

You need someone local to you; if you need a referral, call your county's bar association or the NYS Bar Association (www.nysba.org).

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

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Answered on 5/31/08, 11:42 am


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