At the end of last week, the United States Bankruptcy Court in New Jersey declared bankruptcy for Ahmed Zayat, but legal and financial issues remain looming.
The bankruptcy case, which is more than two years old and still not administratively closed, appears to be over for Zayat, who bred and campaigned for the 2015 Triple Crown champion American pharoah . The release of a mortgage usually frees the debtor from paying off his pre-bankruptcy debts.,
However, debts secured by collateral such as real estate have their own rules. A proposal to allow a mortgagee to foreclose on a New Jersey home owned by Zayat and his wife Joanne has been on the scene for most of this year.
According to court filings, Zayat has dropped nearly $360,000 in a mortgage owed to the Wilmington Provident Fund since March 2021. Zayats agreed to a Consent Order that was put in place four days before bankruptcy. property, offering a roadmap to achieving the present.
Under the terms of the order, Zayats, beginning November 1, must make regular monthly mortgage payments of $19,154.73 and pay an additional $10,845.27 per month until the debt is repaid. end.
The order says if any payments are due later than 30 days later, the mortgage holder can pursue his or her rights in state court, including foreclosure. Under the terms of the Consent Order, now that Zayat is discharged, the mortgagee does not need to seek permission from the bankruptcy court to exercise his rights.
