Defense of Deficiency Proceedings and Suits on Guarantees

The law firm of Lamberth, Cifelli, Ellis & Nason, P.A., represents debtors in deficiency judgment proceedings. For more information regarding debtors’ rights in foreclosure matters, contact our law firm in Atlanta today.

Deficiency Proceedings: Debtors Rights

When real estate is sold at foreclosure and insufficient cash is generated to pay the loan balance in full, the lender may elect to obtain a personal judgment against the borrower for the unpaid balance. However, O.C.G.A. § 44-14-161(a) requires that a lender seeking a deficiency judgment bring an action in the Superior Court in the county in which the sale occurred within 30 days of the sale. If no action is brought within the 30-day period, the right to pursue a deficiency is lost. If an action is brought, the Court will hold a “confirmation hearing” at which the judge will examine how the sale was conducted to determine whether the property was sold for its fair market value. The requirements of O.C.G.A. § 44-14-161(a) apply to, and protect, both primary debtors and guarantors. Additionally, the continuation of any action against the primary debtors and guarantors on the underlying debt is prohibited.

Experienced Bankruptcy Litigation Attorneys

The professionals at Lamberth, Cifelli, Ellis & Nason, P.A., are highly experienced in dealing with issues related to foreclosure sales and confirmation hearings. Further, they have vigorously protected debtor’s and guarantors rights by obtaining significant rulings from various courts throughout Georgia. (See e.g. Marshall Investments Corporation v. Kolb, Civil Action No. 1:08-CV-865 (N.D. Ga. October 16, 2009)).

Contact Us

For more information about deficiency proceedings and suits on guarantees, contact an experienced lawyer at our law firm in Atlanta.