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How do you enforce a lien against a promissory note 65000 that does not have collateral. BK court abandoned the note as not collectible between the lien holder and creditor. A 3rd party is involved?
Wiki User
∙ 15y ago
Your question answers itself. You cannot enforce a lien "against a promissory note...that does not have any collateral." Not knowing what the 3d person's connection to all this is, I can't say what effect that has on anything. The trustee, not the court, abandoned the note as not collectible. You think the trustee was wrong? Do you know something the trustee doesn't?
Wiki User
∙ 15y ago
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What is the difference between a Secured Promissory Note and a Promissory Note?
A secured promissory note has collateral attached - usually an item/items of value or a deposit. If the note is not fulfilled, the creditor can seize the collateral as payment. An unsecured note has no collateral attached.
If you have signed a promissory note with a five-year repayment term and you file for bankruptcy will you be protected from repayment of the debt?
Unless you committed fraud, the answer under most circumstances, yes. If you pledged any collateral as security for the loan, the creditor's lien on the collateral would survive. The creditor would have 60 days after the meeting of creditors to file an action objecting to your discharge. If the creditor took no action, the debt on the promissory note would be discharged.
Why is a Motion for Relief from Stay is filed?
It is filed because a secured creditor (who has stopped receiving payments) wants to foreclose on the collateral of the loan/promissory note. It is filed because a BK filing prevents a creditor from trying any collection activity (the "stay"). So a creditor that wants to continue to collect/foreclose must seek court permission to do so- hence "relief" from "stay"
Can a creditor sue for unsecured debt?
* An unsecured debt, generally, is a debt that is not backed by collateral. For instance a car loan is secured by the security interest the lender has in the car. A credit card which is not backed by collateral is not secured by collateral therefore it is an unsecured debt. Generally, yes a creditor can sue for unsecured debt, the creditor just doesn't have any interest in the good that formed the basis of the loan.
What does the concept of secured debt mean in finance?
Secured debt is a debt that is guaranteed by the use of collateral. If the debt is not repaid, the creditor has the right to take the collateral from the borrower.
When a creditor sue you can they get your own car?
It's possible that you may have to give up your vehicle as collateral, although the creditor would more likely have you wages garnished.
What happens to a promissory note if the creditor takes title to real property?
Real property can only be encumbered by a mortgage and not by a promissory note. A promissory note has no effect on real property it is only evidence of a loan. If the mortgagee acquires title to the mortgaged property the title merges and the mortgage is extinguished.
Obligation to pay to another a certain amount of money which has collateral that the creditor may seize?
secured debt
What happens when two secured parties claim security interests in the same collateral?
When there are two secured parties claiming security interest in the same collateral, the creditor that is perfected (having filed a financing statement) will have priority over the interests of an unsecured creditor or unperfected secured party
How is collateral connected to a loan from a bank or credit union?
Collateral - in the form of a repayment promise or property... is a 'guarantee' that the person will repay the debt. If the borrower defaults on the repayments, the creditor can recover their money from the guarantor.
How do you file for a judgment for an unpaid promissory note?
The creditor (holder of the note) would need to file a lawsuit in the court of jurisdiction where the debtor(borrower) resides. If the creditor prevails in the suit a judgment will be entered against the borrower. The creditor can then execute the judgment in accordance with the laws of the debtor's state.
What does secured loan?
A secured loan is a loan in which the borrower declares an asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who issues the loan. The debt is thus secured against the collateral - in the event that the borrower defaults on the loan, the creditor takes possession of the asset used as collateral and may sell it to satisfy the debt by regaining the amount originally lent to the borrower.
