Lincoln-Alliance Bank & Trust Co. v. Dye

The only question in this case is whether the bankruptcy court was obliged to allow the mortgagee to foreclose a mortgage upon the ship three weeks after a petition for reorganization of the mortgagor had been filed on April 17, 1939, under Chapter X of the Bankruptcy Act, 11 U.S.C. A. § 501 et seq. It is quite true that on the showing made there was little chance that any equity in the ship existed, or that the foreclosure could in the end be avoided. The principal and interest due upon the mortgage was over $175,000 and the only evidence of her value was an appraisal of $125,000; she had…