Reporting Back - Business Debt and Chapter 7

[wrinkleigh]

You requested it, so I am reporting back.

As far as my business debt goes, the lawyer said that we probably signed a personal guarantee for the debt, so we will list them on our personal Ch7.
Since we are dissolving the corporation, they cant get it form there, and including it on the personal covers us. We only have to file for personal.

Only thing I am even remotely worried about is my home. I have a 1999 manufactured home on 2 acres of land. I used my county's tax assessment fai market value figure which is 78163.00, we owe 57393.45, which puts us over the exemption by 769.55. He said it is unlikely that they would seize my home for 769.55, we would probably just have to buy out that portion of the equity, which we can borrow from family if it came down to it. But he is worried that the trustee may try and say it is worth even more than that, in which case we are in real trouble. He suggested that I have it valued by a real estate agent (or two) and get a written appraisal. If we are way over, we may want to back up and recondiser filing. If is is about the same value (or less) and we have it in writing, he said that we could probably argue it, and the judge we are going in front of is pretty "pro-debtor". So there is always a chance I will lose my house. But he said he feels confident, especially since its a manufactured home, that they would probably leave it alone.

There is really nothing else I am concerned about losing. We have 2 ATV's and the store inventory, thats about all we own, and I am prepared to lose them.

We also do have a fair amount f charges in the past 90 days, he looked over them and could see that they were for food/gas/necessities. He said that we could go ahead and file, and would probably be ok. I have added it up, and the most we would be liable for if every single charge has to be paid (not every card is over $500.00), we would come out owing $5,000.00. I can live with that amount (certainly more that the $90,000.00 I currently owe). He said we could argue that.


Does anyone have any thoughts/advice about my home?

Thanks for the support, I seriously think this is the hardest thing I have ever been through in my life.

[SinkingFast]

I don't think the Trustee would sieze your home over a few hundred $$'s difference. The Trustee would sell quick, at a lower price, have costs to sell. Plus the Trustee has to pay the Lender for the loan and you for your Exemption. So your attny's advice that worst case you may have to pay a few hundred $$$'s sounds right on.

With the bubble bursting of late, your home may not be worth as much in the market right now. Get 2-3 Realtors in there to give you an idea of what you should market it for.

Ask around and try to call Realtors that have been doing biz in your area for years. Act like you're thinking of selling and you want to see where you stand. Realtors are very good indicators of what an appraiser would say. Best part is, their opinions are free.

If your attny suggested you get an appraisal, you might want to as an "official" statement of the value. It's kind of a toss up tho. You pay an appraiser $400 or you pay the Court a few hundred. Once you see what the Realtors have to say, maybe decide on the appraiser then.