I will circle back on Monday (talking with the bankruptcy lawyer and the loan people, and will add this to the list of questions I have.)

I think a lot about the line from Ernest Hemingway’s novel, The Sun Also Rises, where the character Mike describes bankruptcy as gradual and then sudden.

Environmental concerns - manufacturing, underground storage tanks, etc.Was there an active bankruptcy case for the owner when the sale occurred that could void the sale?

Tax free growth and bankruptcy/lawsuit protection.

Long story short, he owes about $18,000 on the bankruptcy and once that is paid, the filing will be discharged.

My business partner's father, the homeowner, filed for Chapter 13 bankruptcy a few years after he took out the HELOC. 

I suggested her to pull a HELOC and finish the basement but she filed for bankruptcy and can't get any loans. 

I have done it many times.. this is nice if your borrower actually has money .. because there is little to no defense from a unsecured Prom note.. you borrowed the money you owe it.. now it can be wiped out in Bankruptcy but if you think the borrower is a BK chance you don't lend to them in the first place

We have no private note industry, no REO, no tax sales, no notes and liens industry, and bankruptcy stuffs your entire life for over a decade so I find America to be like heaven when it comes to RE.

This is because you as the investor/buyer gives them a way out of the dark place they are in (i.e. foreclosure, the verge of bankruptcy).