Friday, September 15, 2023

Selling a Property with Unpaid Utility Bills? Find Out What Happens From the Sale

Bankruptcy Attorney Ann Arbor
Any unpaid balances due to the utility company would become a lien against the real property and can be enforced against the real property. 

A lien is usually preserved with a Financing statement and by notifying the tax assessing authority to place it on record to be discovered and listed via a Title Search before closing. If a sale, refinancing, or foreclosure occurs, the unpaid balance may  be paid from the proceeds if there’s enough money to cover the lien. If there’s not sufficient proceeds to pay the lien, the lien will be extinguished. 


Learn more about utility bills as consumer debt in bankruptcy here.


Have Bankruptcy Questions? Contact a Bankruptcy Attorney in Ann Arbor to Help You!


If you need help filing for bankruptcy, consult a bankruptcy attorney in Ann Arbor for a free consultation on whether you qualify. (734) 665-4441

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