Partner and Brooklyn bankruptcy attorney Bruce Weiner successfully won yet another “complex” case involving claims and counterclaims, which was cited in Bankruptcy Reporter. Read the judge’s decision here: In re Merhi, 518 B.R. 705 (Bankr. E.D.N.Y. 2014).
His client, the creditor, sold a house to the debtor with a balloon mortgage. When it came time to pay, the debtor couldn’t come up with the money. The creditor started a foreclosure action, got a judgment and scheduled a sale of the property.
The debtor requested and was granted a series of extensions, but never made good on them. Meanwhile the debtor filed for bankruptcy in an attempt to keep the property. However, the debtor was unable to satisfy the requirements of a chapter 13 filing. In addition, the debtor claimed that the creditor acted illegally.
Mr. Weiner defended the alleged illegal actions and proved that the debtor did not have the ability to repay the mortgage according to the plan he laid out.
As a result the judge denied the debtor’s Chapter 13 petition and claims against the creditor.
The creditor can now reschedule the sale and hopefully recoup what was owed by the debtor.