§ 32-18-1-13 — Lien or encumbrance on property sold

Indiana § 32-18-1-13

• Jurisdiction: Indiana
• Title 32: PROPERTY
• Art. 18: INTERESTS OF CREDITORS IN PROPERTY
• Ch. 1: Assignment of Real and Personal Property for the Benefit

Text

(a) A part of the property assigned on which
there are liens or encumbrances may be sold by the trustee subject to
the liens or encumbrances.
(b) However, if the trustee is satisfied that the general fund would
be materially increased by the payment of the liens or encumbrances,
the trustee shall make application, by petition, to the judge of the
circuit court, superior court, or probate court for an order to pay the
liens and encumbrances before selling the property. Before the holder
of any lien or encumbrance is entitled to receive any part of the holder's
debt from the general fund, the holder shall proceed to enforce the
payment of the debt by sale, or otherwise, of the property on which the
lien or encumbrance exists. For the residue of the claim, the holder of
the lien or encumbrance shall share pro rata with the other creditors, if
entitled to do so under Indiana law.
[Pre-2002 Recodification Citation: 32-12-1-13.]

Legislative History

As added by P.L.2-2002, SEC.3. Amended by P.L.84-2016, SEC.139.