Tampa, FL · Member since 2016 · 11 posts · 2 votes
Yes .. I just have a quick question... If a homeowner wishes to file bankruptcy on a property will bankruptcy protect them from the code enforcement. Thank you
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
It would be fruitless in any case. Code enforcement fines are not a personal debt against the individual, just the property (can also be other properties owned by that individual) and bankruptcy won't remove the lien from the property in any case.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
It would be fruitless in any case. Code enforcement fines are not a personal debt against the individual, just the property (can also be other properties owned by that individual) and bankruptcy won't remove the lien from the property in any case.
Tampa, FL · Member since 2016 · 11 posts · 2 votes
10y
Ok.. Just a little more insight.. If an individual files bankruptcy on a property forcing it into foreclosure... And it has previous violations before they file... Who liable for the fines ...
Investor · Bethlehem, PA · Member since 2016 · 229 posts · 122 votes
10y
I didn't know a property can file bankruptcy? I'm pretty sure the property would go into foreclosure while you or the entity owning the property filed bankruptcy.
Just like with any foreclosure, I would imagine the violations/fines would remain with the property and have to be paid by the person who buys your house at auction/from the bank.
FYI - I don't know about your situation but you should do whatever u can to avoid bankruptcy. Your credit can be destroyed, it will prevent you from working any job in the financial industry, can cause you to lose your job if good credit is a requirement and maybe worst of all, it will hinder you from buying additional properties. Good luck!
I didn't know a property can file bankruptcy? I'm pretty sure the property would go into foreclosure while you or the entity owning the property filed bankruptcy.
Just like with any foreclosure, I would imagine the violations/fines would remain with the property and have to be paid by the person who buys your house at auction/from the bank.
A property cannot file a bankruptcy. However, if the owner files, the property becomes property of the estate and foreclosure is stayed by the automatic stay.
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
10y
An asset is only that. It is either real (real estate) or chattel (personal property). An asset has no standing. However, it can be 'arrested' and ownership force ably transferred via marshaling IN REM.
An agency empowered to "enforce" a local municipal, county, district or state code makes the demand upon the owners to comply. Many iof these compliance liens are super-priority and run with taxing authority. What they are not is a debt of the the owner(s) that may be discharged, despite BK being Federal codes.
This is because compliance liens run with the real estate "IN REM" (the thing) and restrict the use, benefits and enjoyment until satisfied.
C/E liens can be tricky stuff. However, is your current and future character and credit so low that you'd really be willing to jeopardize for a couple thousand bucks?
Which part of Indiana are we talking about and what are the liens for? Code enforcement has recently changed the way they are doing things in Indianapolis.. They are levying fines on properties, and then if you get the issues resolved they are saying they will remove said fines/liens... I have a property that they tacked 3k on to the property for nuisance fines, but supposedly after I get the garage torn down they will go away.. I haven't finalized this deal yet, so unsure if it will happen the way they say, or not. It's really weird at this point..
Also, the fines should not follow the person, they should stick to the property.. If you go to purchase the property though, the fines will need to be paid before title can transfer, or the new owner will need to accept responsibility for them.
Tampa, FL · Member since 2016 · 11 posts · 2 votes
10y
Thanks for the information people... I know foreclosing on a home is not a good idea... But it is in our best interest right now due to our current circumstances... Thanks