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Assuming this is a straight bankruptcy, the mortgagee would lose the money that is owed to it on the mortgage loan. A bankrupt person or corporation loses all of his/her/ its assets to the Trustee in Bankruptcy so that the Trustee can liquidate those assets and distribute the net proceeds to the creditors. The mortgage loan is an asset which is then sold to the highest bidder along with the mortgage lien. The mortgage holder will now make the mortgage payments to whoever purchased the mortgage loan from the bankrupt estate. The mortgagee is left with nothing.
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What happens if a co signer files bankruptcy?
They both go bankruptcy
What if happens if you cosigned for car loan and the borrower files for bankruptcy?
if the consigner files bankruptcy can the borrower take the car
When a company files bankruptcy what happens to the union contracts?
They can be changed by the Court.
What happens to your wage garnishment when the company files bankruptcy?
your wages still garnished
What happens when a business is owed money by a company that files for bankruptcy?
Need the right answer
What happens when the ex spouse files bankruptcy after you divorce?
For any joint debts, the creditor will come after the spouse who has not filed bankruptcy.
How is the tenant affected when a landlord files Chapter 7 Bankruptcy?
It depends on the way the house is included in the bankruptcy. If the mortgage is up to date and the landlord is reaffirming the mortgage, there should be no effect. If the landlord is abandoning the property to the mortgagee, you will either get a notice to start paying rent to the mortgagee or a notice to quit or both. Talk to a bankruptcy lawyer right away, as there are some things you may be able to do to delay things or get help moving.
What happens if car dealership files bankruptcy how do you pay for vehicle?
If a car dealership files for bankruptcy, someone will purchase the accounts receivable as part of the bankruptcy settlement. That person or company should contact you and tell you where to make payments.
What happens to your money if your bank files for bankruptcy?
Banks are insured up to 100,000.00 by the government.
What happens to your ticket when an airline files bankruptcy?
Nothing, the ticket is not a debt and would not be included in their bankruptcy. The ticket should still be good.
What happens to the primary if the co-owner files for bankruptcy?
The primary would be held liable for the debt.
What happens to a cosigner of a car loan when the primary loan holder files bankruptcy and the loan is discharged and they do a voluntary repossession?
They can still come after the cosigner, and it will still reflect poorly on your cosigner's credit history. You have been absolved of the debt, not your cosigner.
