Developer declares Chapter 11 / Effect on property tax lien??

[nazfrank]

I own the tax lien certificates on two parcels belonging to a land developer. They filed for chapter 11 protection. Will this have any effect on me forclosing when the time comes? Does this effect me in any way? .. Thanks

[OhioFiler]

It does affect you. You can't proceed with a foreclosure while the Automatic Stay is in place. Chapter 11 is a business reorganization. I'd talk with your attorney soon on this subject.

[HHM]

yep, you are pretty much dead in the water. If you have grounds, you could file a Motion to Lift the Automatic Stay so you can proceed with foreclosure.

[nazfrank]

OK, thanks for the info. How long does chapter 11 last? Do they give him x amount of time to get it together? ... Frank

[biotechsolution]

more than likely you are only going to get your original investment back. You are a secured creditor but only up to the amount of the certificate. The bankruptcy court is going to sell the property off to pay all the creditors. The IRS will aslo take first priority so your certificate could be worth little or nothing. But you are also somewhat at the mercy of the judge, you could less than your initial investment.

[wilson9975]

Hi,

In Chapter 11 bankruptcy, the business makes an attempt to come up with a new payment plan to reorganize its debt. The plan is presented to the creditors in bankruptcy court, who then cast ballots to vote on whether or not to accept it. If they agree, the plan becomes a new contractual agreement between the parties.

If they disagree, you may try to come up with a new plan, or the court may impose the plan on the creditors.