Looking for help

[Brokenmail]

Background in 2013 I took a 35% pay cut at my job. Needless to say it was a hard time, still trying to get back on my feet. Ran up credit cards to try and get by but pay increases have not been fast enough to manage at this point. Between my spouse and I, we have about 37,000 in credit card debt. No car payments. And 1800 in mortgage, which we have been able to keep up to date on. I am a 50% partner with my father in a rental property which is an LLC. Make no money off the property, long term goal only. Is it possible to file and not effect that rental property, what to keep dad out of my mess. And what about our actually home? Live in Oklahoma if that is helpful info? Please any input/advise. Causing much stress on myself and my marriage. Need help here please. Thank you

[LadyInTheRed]

Your 50% interest in the LLC is an asset that you must include on your bankruptcy petition and exempt its value if you can. If you can't exempt it, then the trustee could get at your interest, assuming you have the power to transfer your interest. But, assuming the law that covers Partnerships, includes LLCs, which is very possible, it sounds like the trustee cannot force a sale of the assets of the LLC, only your interest. The trustee can also receive your interest in any income in the LLC. This is based on http://law.justia.com/codes/oklahoma...tion-54-1-504/ If there is value in the LLC and I am reading the law correctly, your father will be able to continue to operate the LLC, but he may end up with a new partner.

If there is value to your interest in the LLC, one option is to file a Chap 13 and pay at least the value to your unsecured creditors during the length of your plan. Whether you can do that depends on whether you have enough disposable income to afford a large enough plan payment to do that in 3 to 5 years.

According to http://www.nolo.com/legal-encycloped...xemptions.html, Oklahoma has an unlimited homestead exemption to protect your home, as long as it is no larger than 1 acre in a city, town or village, or 160 acres elsewhere.

Please confirm all of this with a bankruptcy attorney or 3. Most give free consultations. Because of the LLC, you want to make sure you get advice from a good, experienced attorney.

[Brokenmail]

Thank you for that info. Was pretty sure the LLC deal was going to hurt. May be time to sell our current house pay down debt and rent a bit. Should have probably done that in 2013 when stuff hit the fan. Worked two jobs for 2.5 years, 7 days a week to try to avoid that. Time to throw in the towel and give up on the dream of staying put. Life happens

[LadyInTheRed]

Is a Chap 13 not an option? I suggest that before you make any decisions, you consult with some bankruptcy attorneys. Selling your house might be the best move. But, with an unlimited homestead exemption, there may be better options for dealing with your debt.