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Lisa and Adam signed a $ 2 0 0 , 0 0 0 mortgage with Bank. They had to file for bankruptcy. Does the bank
Lisa and Adam signed a $ mortgage with Bank. They had to file for bankruptcy. Does the bank still have a legal right to enforce its mortgage against Lisa and Adam? Yes but the bank will have to wait until the bankruptcy trustee "releases" the claim before the bank can proceed No the bankruptcy discharges any obligation Lisa and Adam have to the bank and they can keep their home since Iowa provides an unlimited exemption for a homestead
Big Corporation files for a reorganizational bankruptcy. This is a Chapter proceeding.
In Chapter the author lists various types of debts that may not be discharged in bankruptcy. See Discharge Page of the book Section Let's say that Troy has filed for bankruptcy. One of his creditors is Mary Old who has a $ judgment against Troy for injuries he caused when he caused a car accident while driving drunk one night. He was found guilty of drunk driving and causing serious injury. He was also sued by Mary and she obtained the $ judgment against him. Will the $ judgment be discharged in bankruptcy? Yes No
Let's say that instead of causing injury to Mary Old when he was driving drunk, Troy caused a car accident because of his negligence ran a stop sign while not paying attention Mary obtained a $ judgment against Troy in a lawsuit due to his negligence. Can Troy have this judgment debt discharged in bankruptcy if the judgment is based totally on his negligence? Yes No
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