1st home liquidating trust

Posted by / 10-Oct-2017 12:38

1st home liquidating trust

The Liquidation Trustee is authorized, on behalf of the Liquidation Trust, to litigate claims under Chapter 5 of the Bankruptcy Code.

The Debtors filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code on January 15, 2015. The Plan became effective on December 31, 2015 (Docket No. The statutory deadline to file avoidance actions is on January 15, 2017, meaning additional actions could be filed.

Recently, the Wall Street Journal highlighted the arrival of “bad loan securities.” If this is a trend, and I both hope and think it is, we clearly have to get a better deal name for these than “Insert Bank Name”, Bad Loan Securities 2012-1.In her complaint for wrongful foreclosure, Yvanova alleged that the 2011 assignment of her deed of trust was “void” for two reasons: (1) New Century transferred its assets, including Yvanova’s loan, to its bankruptcy trustee in 2008; and, (2) the Morgan Stanley investment trust “closed” to new loans in 2007 – almost four years before the purported assignment. Liquidating trusts can be effective tools to wind down any business enterprise, including debtors in Chapter 11 bankruptcy cases and entities that dissolve outside of bankruptcy. To that end, in a Chapter 11 case, a debtor’s exclusive right to file a plan is limited to 120 days (subject to extensions for cause), but once a plan is confirmed, the bankruptcy estate ceases to exist and the debtor loses its status as debtor in possession, including its authority to act as a bankruptcy trustee and pursue estate claims.The simple fact, however, is that the Court’s decision endangers only a special (and soon-to-be dwindling) class of lenders: Those too lazy, cheap, or sloppy to properly document a simple contractual assignment.In 2006, New Century loaned 3,000 to plaintiff Yvanova, secured by a deed of trust on Yvanova’s Woodland Hills’ home.

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Depending, of course, on the depths of ugliness in the pool, this is 35-55% leverage with a sponsor holding the risk piece.

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