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Is Chapter 7 an Option?

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missflo

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

My husband and I owned rental properties, all of which were mortgaged. We also invested in some properties which we remodeled and intended to sell. However, due to the decline in the real estate market here, we have had to sell those properties just to pay off what was owed and have lost several others through foreclosure. We now have a couple of judgments against us totaling around $80,000.00. Our income declined to the point that we could not continue to maintain the payments on everything. I do not foresee being able to pay off such a large amount of money. any time soon. I am wondering if it would benefit us to file bankruptcy, in our situation. Our main remaining source of income is an apartment complex. It's value today is probably around $600,000.00 and we owe $450,000.00. We do not want to lose it as it is the only way we can support ourselves right now but want to continue making payments on it. Our only other asset is our home which is mortgaged at about $ 279,000.00 and valued at about the same if not slightly less now. We want to keep paying for it also. This being the case, can we file bankruptcy or would we be forced to sell our remaining real estate investment and our home? I guess I don't understand how one qualifies for bankruptcy. Do you have to be totally impoverished?What is the name of your state (only U.S. law)?
 


bigun

Senior Member
Qualify for BK = Liabilities are more than Assets. Period.

This isn't correct. Many people leave bk with a positive net worth.
For ex. in some states, all the equity in a home is exempt other state allow 6 figure exemptions. Plus, 401K accounts are exempt and IRA's up to $1.095mm.

Do see a few bk lawyers. If you wish to keep the investment property, you'll likely be in a Chapter 13.
 

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