As we study later, in bankruptcy an unrecorded mortgage can be avoided (i.e. wiped out) with the result that the value of the property will be available to all unsecured creditors of the debtor in bankruptcy.

     By successfully arguing that the Lovelady's mortgage on the lease was properly perfected, the defendants escape liability for any loss that the bankruptcy trustee was able to leverage from the Loveladys. The implication of this decision is that the Loveladys would have prevailed in litigation with the trustee had they made the same arguments which the defendants are making here.