Addison, IL asked in Bankruptcy for Illinois

Q: Do I have to pay all lien holders 100% if I file for Chapter 11 if I want to keep it in Illinois?

Commercial property with a market value of 1.8 -2.0 Mil . Have 1st $ 2nd Mortgages for 1.5 Mil. Have a lien from a lender who used it as collateral for 1.2 Mil.

I can afford the 1st & 2nd mortgages. If I have to pay a lender who used the property as collateral do they need to be paid in full even if they are not fully secured? How long could I reasonably get to make payment plan.

If I have to pay the collateral lender could I then extend the first and 2nd mortgages over their objections so I could afford to make any necessary payments to the collateral lender.

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1 Lawyer Answer
Timothy Denison
Timothy Denison
  • Bankruptcy Lawyer
  • Louisville, KY

A: To keep property you will have to pay all three liens. The third may be avoidable to a degree. Consult a qualified bankruptcy attorney

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