Source: https://creditorsrights101.com/2018/02/
Timestamp: 2020-03-31 12:54:22
Document Index: 36492635

Matched Legal Cases: ['§ 35', '§ 35', '§ 28', '§ 35', '§ 66', '§ 362', '§ 549', '§ 546']

February 2018 – Creditors Rights 101
Author DavidPosted on February 20, 2018 Categories Judgment CollectionsTags Collection, Nashville Foreclosure, sheriff's sales of real propertyLeave a comment on How to Conduct a Sheriff’s Sale of Real Property in Tennessee: It Depends on Who You Ask
Don’t Let Your Post-Foreclosure Rights Expire: Tenn. Code Ann. § 35-5-118(d) Imposes a Two Year Statute of Limitations on Deficiency Lawsuits
Last week, a local collections lawyer conceded, in open court, that collection cases rarely have interesting issues involved. This case was different, the lawyer argued, because it involved interpretation of Tenn. Code Ann. § 35-5-118(d), which has not yet been discussed in any Tennessee opinion.
This is the new foreclosure deficiency statute, and I’ve dealt with this law a few different times. Here’s a blog post about the first judicial opinion defining what constitutes a reasonable bid price at foreclosure under the statute.
I’ve also noted that the statute shortens the statute of limitations on pursuing post-foreclosure deficiency lawsuits. Specifically, the statute says:
(d)(1) Any action for a deficiency judgment under this section shall be brought not later than the earlier of:
So, to collect your debt after a foreclosure, you have to act fast in Tennessee. While two years doesn’t sound like a short time frame, it can be, where the creditor spends time on eviction, selling the property, or even selling the deficiency debt to a third party.
The statute has a September 1, 2010 effective date, so the courts may still be dealing with deficiencies from both the pre-statute and post-statute time periods.
Always be on the look-out for this issue. In the “interesting” case that I mentioned above, the foreclosure occurred in February 2011, with the lawsuit filed in February 2014. In response to this issue, Plaintiff’s counsel confidently cited the general six year statute of limitations on breach of contracts (Tenn. Code Ann. § 28-3-109). The Court rightfully held that the more specific timelines of the foreclosure deficiency statute controlled and dismissed the action.
Who says collection cases aren’t interesting? We made law that day!
Author DavidPosted on February 19, 2018 February 19, 2019 Categories Judgment Collections, Lien Litigation, LitigationTags deficiency judgment, tenn code ann 35-5-118Leave a comment on Don’t Let Your Post-Foreclosure Rights Expire: Tenn. Code Ann. § 35-5-118(d) Imposes a Two Year Statute of Limitations on Deficiency Lawsuits
Holding a Car Pursuant to a Mechanic’s Lien Doesn’t Violate the Automatic Stay
Generally, if you’re a creditor and you have possession of a bankrupt debtor’s possessions, you have to give it back when they file bankruptcy. But not always.
Today, I’m talking about mechanic’s liens.
As you’ll remember in Tennessee, Tenn. Code Ann. § 66-19-101 allows a mechanic to assert a lien for repairs performed on a vehicle, and, in order to preserve the super-priority perfection in the vehicle, the mechanic has to retain actual, physical possession of the car.
But, what about when the customer files bankruptcy, and the demand to turnover the vehicle comes from a Bankruptcy Attorney, alleging a violation of the automatic stay?
Bankruptcy Courts say that the mechanic can still hold on to the car.
Certain actions are excepted from the automatic stay, including “any act to perfect, or to maintain or continue the perfection of an interest in property to the extent that the trustee’s rights and powers are subject to such perfection under section 546(b)” 11 U.S.C.A. § 362(b)(3). Section 546(b) limits a trustee’s avoidance powers under 11 U.S.C.A. § 549 with respect to “the maintenance or continuation of perfection of an interest in property … [i]f a law … requires seizure of such property … to accomplish such perfection, or maintenance or continuation of perfection of an interest in property[.]” 11 U.S.C.A. § 546(b). Statutory liens such as mechanics liens fall within the scope of this exception.
That’s a lot of legal citations, so here’s the take away: if the repairman holds a statutory mechanics lien upon the vehicle for the repairs done, then the retention of the vehicle–even after the Bankruptcy Case is filed–does not violate the automatic stay.
In that case, the Debtor must either propose to pay the lien, fight it, or give up the car. Good news for mechanics.
Author DavidPosted on February 19, 2018 Categories BankruptcyTags mechanics lien, vehicle lienLeave a comment on Holding a Car Pursuant to a Mechanic’s Lien Doesn’t Violate the Automatic Stay
Author DavidPosted on February 15, 2018 February 15, 2018 Categories Legal ProfessionTags law school, lawyer depression, Legal Ethics, new lawyers, substance abuse in lawyersLeave a comment on Get Your Law School Applications In: Welcome to the Profession
Author DavidPosted on February 6, 2018 Categories Legal ProfessionTags delete facebook, lawyer facebook, social media for lawyersLeave a comment on I Deactivated Facebook, and I Miss it for Business Reasons (Sort of)
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