Bankruptcy Judge Refuses to Set Aside Sale

Bankruptcy Judge Refuses to Set Aside Sale

Bankruptcy Court Judge, Shelley Rucker,  has declined to set aside the controversial sale of a 15-acre tract by I-75 that bankrupt millionaire Toby McKenzie maintains is worth as much as $2 million – not the $2,500 that was paid for it. However, Judge  Rucker did modify the terms of the sale. In a 20-page opinion, she said the wording “free and clear of the liens of Citizens Bank” should be removed from the document.

Richard Banks, bankruptcy attorney for Mr. McKenzie, had argued that Trustee Kenneth Still made a mistake when he allowed the sale to auto dealer Nelson Bowers to proceed. He said Mr. McKenzie would be willing to pay $100,000 for it, instead of the $2,500 price paid by Mr. Bowers.   (Courtesy of chattanoogan.com) Read More

Debtor Failed to Object to Sale in a Timely Manner

According to Judge Rucker Mr. McKenzie, the Debtor, failed to object to the sale in a timely manner.  She said, “The court finds that debtor’s medical condition in the fall of 2009 was not an excuse for failing to object to the sale motion or to seek reconsideration of the sale order.”  The judge did modify the sale be removing the language that made the sale free and clear of the mortgage, which means the debtor may have to repay that loan in his Chapter 13 Bankruptcy.

This case is a prime example of the complexities involved in bankruptcy. If you have questions about bankruptcy contact anexperienced bankruptcy attorney

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