Bankruptcy Law Blog

Friday, May 22, 2015

Bankruptcy Petitioner Attempts to Block $13.08 Million Auction

Can a bank foreclose on a property when the mortgage documents were forged?

Danny Ray Butler is fighting a thirteen million dollar battle from a federal prison.  Butler filed for an emergency injunction to prevent the sale of 4 parcels of real estate.  He says that the mortgage on four parcels of real estate was forged and that he never signed mortgage papers.  The parcels include the home of Butler’s developmentally disabled brother, a 60-acre pecan orchard, a portion of the Fosters Water Treatment Plant and approximately five acres of undeveloped property.  

A handwriting expert testified in court that he had examined the documents in question and that Danny Ray Butler did not sign the mortgage papers.  An attorney for Alabama One, the credit union holding the mortgage, said, “Not only did he sign the document he now challenges, but he signed numerous other documents acknowledging the earlier mortgage and agreement. To try and take the position now that he did not sign them is as ridiculous as it is offensive for someone serving a prison sentence for fraud. The allegations his bankruptcy estate made yesterday are a recent concoction that he has never even hinted at before, including in his earlier sworn testimony in this case.”

Butler’s fiancé does not believe that he is completely innocent, but adds, “Anyone who knows Danny knows he didn’t come up with all this on his own. There are still people who haven’t yet paid the piper and I am more than happy to help them do that."  Meanwhile, there is reason to believe that the Federal Judge hearing the case may be forced to recuse herself as, prior to her becoming a judge, she was employed by a large law firm of which Alabama One was a client.

Not every bankruptcy case is as complex and involved as Danny Ray Butler’s.  And yet, some can be even more complicated.  Before getting started, it is important to hire an attorney you know you can trust.  The Mobile and Baldwin County, Alabama bankruptcy lawyers at Padgett & Robertson have the knowledge and experience to best protect you and your assets in a bankruptcy action.  Call (251) 342-0264 today to schedule an appointment.


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