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Business or Personal Bankruptcy?

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missflo

Member
What is the name of your state (only U.S. law)? New Mexico

My husband and I invested in real estate and have suffered excessive losses when the market took a nose dive. We are now just struggling to pay our monthly bills and have judgments against us for more than $90,000.00. Our sole source of income now is a mobile home park, however, we own it as a sole proprietorship under our names only. We refinanced our home and in this market, it is now worth less than we owe. We also have a large mortgage on the mobile home park, around $ 485,000.00 and although it may be worth $550,000.00 on the market, we do not want to lose it as we would then have no income. We have no other assets to speak of and are considering filing bankruptcy. My question is; would we file personal or business bankruptcy; Chapter 7 or Chapter 13? As I said, we earn a living from the park but it is not set up as a business? We just need a chance to get out from under this overwhelming debt but don't really understand our options and what is involved with the different forms of bankruptcy. Can someone help?
 


bigun

Senior Member
With $100K equity in a business asset, you'll likely need to file a Chapter 13 if you want to keep it.
You don't have a routine bk. Most bk lawyers will give a free or low cost initial consultation. Speak with a few and see what they sugest.
 

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