Legal Question in Bankruptcy in Alabama

Business Property Foreclosure

Regarding Foreclosure of business real estate; the bank in question decided to ''call'' our total loan due on the property because of two late payments. We have had a track record for 3 years with excellent history. We have made good on those late payments and yet they have called the note of which we are unable to procure another loan to make payment considering the market we are in. Question: once the property enters foreclosure by the bank and they put the property up for auction or sale, are we the debtors responsible for repayment of the debt after the bank solicits a sale and receives the exact amount or more from the sale? The property is a vacant warehouse and is owned by our LLC. What would be the best course of action to take legally to protect our credit and to protect our personal assets (home real estate, checking, savings, etc)?


Asked on 12/04/08, 2:40 pm

1 Answer from Attorneys
Melinda Dionne Dionne & Dionne

Re: Business Property Foreclosure

If the bank sells the property for the amount you owe, there would be no deficiency. In other words, your loan would have been paid in full and you would not have a balance owed to the bank. As to how you should proceed to protect your personal property, you need to meet with an experienced bankruptcy lawyer. Only after a thorough interview will someone be able to advise you on what action you should take. Please visit our website at dionnelawyers.com. If you have further questions, please contact us at one of the numbers shown on our website.

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Answered on 12/04/08, 11:15 pm


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