Q: Secured creditors in Chapter 7 Bankruptcy.
If I'm a secured creditor with a perfected security interest and the debtor files for Chapter 7 bankruptcy, will the Trustee be able to sell the property that was secured against my loan? Can I take possession of the property and not let it fall into the Trustee's hands?
A: It depends..You can try to move to lift the stay and take the property, but that is subject to liens. The Trustee will possibly try to sell the property, but that is if he/she thinks that they can cram down/compromise the liens, and turn a profit for themselves and the creditors. Also you have to look at the Petition and see if the Property is underwater, who else has liens, and did they try to exempt it out. All of these things make a difference. I suggest speaking with a bankruptcy attorney.
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A: The trustee can sell the property with notice to you and paying you at the sale. You can take your property with a motion and meeting the standard to do so. You cannot just take it.
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