A federal judge has ruled that a Chapter 13 debtor whose home was sold at a foreclosure auction before he filed his bankruptcy petition did not retain his equity of redemption.
The debtor, plaintiff Andy Luu Tran, argued in an adversary proceeding in U.S. Bankruptcy Court that because the foreclosure deed was not notarized, it was defective and thus could not constructively notify third parties of the sale as required to extinguish his equity of redemption under Massachusetts law.
Due to such alleged lack of constructive notice, Tran contended that he could avoid transfer of his equity of redemption under Section 544(a)(3) of the U.S. Bankruptcy Code.
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