Bankr. No.:
00-40956
Chapter:
7
Date of Decision:
June 27, 2001
Issue:
Whether contract for deed holder, on real property that Chapter 7 debtor had not claimed exempt, could get discharged two mechanics’ liens that had been placed on the property subsequent to the contract?
Ruling:
The contract for deed holder’s motion was denied. First, only Debtor’s personal liability to the mechanics’ lien holders was discharged; the general discharge order did not affect the validity of the pre-petition liens. Second, any determination of the validity, priority, or extent of the liens could only be determined through an adversary proceeding. Finally, the issues raised were more appropriately brought before a state court since no bankruptcy laws were at issue and the real property in question was not being administered by the Chapter 7 trustee.
Full Bankruptcy Court Decision:
