Section 7: Bankruptcy Checklist
Anchor: #i1008668Overview
When any person or entity (e.g., landowner, lienholder, mortgagee, tenant) who is in bankruptcy, has an interest in the property to be acquired, it is important to proceed with caution. Actions against a bankruptcy “debtor” or the debtor's “property” are prohibited by the automatic “stay” which goes into effect at the time the bankruptcy case is filed. Unless an order “lifting” the stay is obtained, certain actions (including condemnation) could be deemed to be void, as in violation of the automatic stay, and could subject TxDOT to sanctions by the bankruptcy court. If you have a case, which involves a bankruptcy, the following information needs to be acquired from the bankruptcy court clerk in order to determine the best way to proceed. This information will alert the Assistant Attorney General (AAG) as to whether or not further proceedings in the bankruptcy court are required. Remember, that a Motion for Relief from Stay requires a filing fee, a substantial sum for mailouts, and very possibly a hearing, so the expense is not trivial.
Obtain:
- Anchor: #WLRVAPEC
- Style of case including name of debtor, court where filed, case number, and chapter filed under (e.g., 7, 11 or 13). Anchor: #WODTRSRF
- Date the Petition was filed with the bankruptcy court. Anchor: #PXDFIYJY
- Copy of the Bankruptcy Petition or Suggestion/Notice of Bankruptcy, if available. Anchor: #NBNQKYOM
- Any additional information about the property owner/party/debtor, such as DL#, last 4 of SSN, birth date.
If you have any questions, please contact the AAG in charge of your case before proceeding.