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Can I file a Lender Liability Suit for wrongful following of a Ch 11 agreed court ordered plan?
Anonymous2 views4 answers
The Ch 11 reorganization of my real estate world resulted in a Court ordered plan. The plan called for banks to take back the properties, get an appraisal, do the math, and input the remaining balance in the monthly paid plan for five years. Two Banks failed to do this and now I am getting bills to fix them, pay water run off bills, etc. That is because my name is still on record at the county courthouse. So they don't follow the plan but I had to? Can I sue them in a Lender Liability Suit?
Michael Christopher BurrChapter 13 Bankruptcy AttorneyChicago, IL ·
You can certainly get the court to enforce the plan and any orders that were entered. I suspect you will run into arguments that your plan does not specifically require them to take care of repairs, utility bills, etc. or be responsible for your bills if they fail to do things immediately. There are many cases where even though the debtor says they are surrendering a property, the bank does not have to take it back. Hopefully the plan was drafted to state they would actually take possession of these 2 properties and you can enforce that.
A confirmed Chapter 11 Plan is a new contract between you and your creditors. It is binding, and may be enforced by you. In other words, you can sue the creditor both to force it to follow the Plan and for contract damages if it fails to do so and you suffered a monetary injury.
This is not a DIY project. Speak with an attorney.
David Luther WoodwardChapter 11 Bankruptcy AttorneyPensacola, FL ·
Each of these lawyers have given you explicit and correct advice. I would go to myh Chapter 11 lawyer and explain what has happened. He can the advise on seeking enforcement and if he wrote the plan correctly he can probably seek--and be awarded--attorney's fees and costs for this post confirmation enforcement. What I mean is did you lawyer make the executory matters a requirement as these other lawyers have suggested.
