chapter 7 discharge and self-storage
After a self-storage tenant has had a chapter 7 bankruptcy discharged, what is the procedure for the self-storage co. in vacating the space? Does the lien prior to the discharge remain valid? Can the storage co. sell the property in the space in a lien sale auction? There is a very large balance due and the discharge of debtor came two years ago. There has been no contact with the tenant. Is any other legal procedure required different than a non-bankruptcy lien sale at this point?
Re: chapter 7 discharge and self-storage
Secured debts are not normally discharged in a Chapter 7 Bankruptcy. Unsecured debts are discharged. In your case, if the notice of lien was served before the filing of the Bankruptcy Petition, the lien would not normally be discharged. However, if the debtor filed a motion to avoid lien, or if notice of the lien is not proper, then the lien may be invalid. You should have an attorney review the lien and related documents including the bankruptcy case to determine whether you have the right to proceed with the lien sale. It sounds like you probably do.
Re: chapter 7 discharge and self-storage
Secured debts are not normally discharged in a Chapter 7 Bankruptcy. Unsecured debts are discharged. In your case, if the notice of lien was served before the filing of the Bankruptcy Petition, the lien would not normally be discharged. However, if the debtor filed a motion to avoid lien, or if notice of the lien is not proper, then the lien may be invalid. You should have an attorney review the lien and related documents including the bankruptcy case to determine whether you have the right to proceed with the lien sale. It sounds like you probably do.
