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Bankruptcy Court Rules Foreclosure Sale Valid

Posted By admin || 12-Oct-2009

In the bankruptcy case of Beasley, Leonard; In re, The bankruptcy court ruled that a foreclosure sale held before the debtor's bankruptcy filing was valid.

The details of the bankruptcy case:

"The debtor's home was sold at a foreclosure sale held on Nov. 13, 2008. After filing for Chapter 13 relief on Feb. 9, 2009, the debtor asserted that the sale was improper because the debtor had been determined to be mentally incompetent, a conservator had been appointed, and the foreclosing creditor had not provided the conservator with "individual personal notice" prior to the foreclosure."


The foreclosure notice was served at the debtor's home, which is where the conservator lived. The bankruptcy court ruled that the foreclosure sale was valid because the conservator was fully aware of the notice and that serving the debtor was the same as serving the conservator, especially since they both lived at the same address.

The bankruptcy judge said:

"To suggest that the debtor can avoid a foreclosure sale because notice was addressed to the debtor rather than the conservator is illogical. Robert Beasley had the duty and responsibility to marshal the assets of the debtor and pay the debtor's debts. ... These duties required Robert Beasley to open the debtor's mail and deal with the contents in an appropriate manner. Therefore, in this situation, notice to the debtor was notice to the conservator."

Categories: Foreclosures
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