In re Vernon-Linden Associates

OPINION

WILLIAM V. ALTENBERGER, Bankruptcy Judge.

The Debtor is an Illinois Limited Partnership which owned and operated an apartment complex in Bloomington, Illinois. The Debtor had obtained the apartment complex pursuant to an Agreement for Warranty Deed entered into with several individuals (Contract Sellers). Prior to the Contract Sellers transferring ownership to the Debtor, they had mortgaged the apartment complex and had incurred personal liability to the mortgagees. When the Agreement for Warranty Deed was entered into, their personal liability continued. Subsequently the Debtor filed a…