Question Chapter 11 questions

[bankruptcyme]

Trustee demands me to have a lawyer, threatening to convert me from a 13 to either a 7 or 11.

I want to keep all my real estate.

What is the pitfalls and terrifying fees? I have lawyers scared me that at least $100,000 fees per Chapter 11.

I have 3 LLC.

Please help.

[lrprn]

You aren't going to get help for Ch 11 here - we know about Ch 7 and 13 only.

Sometimes we all wanted to keep things that just aren't possible to keep because of our financial situations. You have to make hard choices sometimes to get out from under crushing debt. This may be the case for your properties.

As we've advised before, you have a very complex situation with multiple LLCs involved and a self-filed Ch 13 that is already on your trustee's radar as an abuse case. You need expert legal representation no matter which way you go forward. Get going and find it.

[HHM]

The filing fee for a chapter 11 is just over $1000.

You need to get a LAWYER ASAP.

My guess is, the trustee is on your case because you exceed the debt limits for a chapter 13 or the plan is simply not feasible.

What are you trying to accomplish, exactly, with the real estate?

Keep in mind, bankruptcy is not about having your cake and eat it too. Unless the real estate generates profitable cash flow, they are toast in a BK scenario.

[bankruptcyme]

To stop foreclosures

I need to file a bk to stop the truste sales in the foreclosures.

I have to file something and then hope it get dismissed, then I file a chapter 11 by each of the LLC, which is holding the title on each property.

Each real estate is owned by a separate LLC.

One LLC owns 3 pieces of real estate.

Wonder if you know how much it will costs per LLC, I was told each chapter 11 can cost at least $100,000 and up.

Hope the chapter 11 will strip some loans and crammed down the first deed to.

Have a hard time finding a chapter 11 lawyer, all want $20,000 up front.

[HHM]

How much are these properties worth, and do they generate a cash flow?

Also, are you personally gauranteed on any of the mortgage notes?

Chapter 11's are where the big boys play, I doubt a simple real estate, chapter 11, will cost $100,000, but $15,000 to $20,000 upfront with an hourly rate is not unreasonable. So, if you need 3 chapter 11's, your total will probably be around $100,000 for all 3.

Without more info, it's hard to say whether you need an 11, but to be frank, most real estate BK's turn into chapter 7's because the rescue plans in chapter 11 (or Chapter 13) cannot be properly funded. If you are balking at a $20,000 retainer for a chapter 11, odds are VERY GOOD, you are NOT a chapter 11, you're simply not in a position to keep these properties.

[bankruptcyme]

Chapter 11

Prime San Franciso real estate

Some owe more than a few millions. So I must file Ch 11 or lose everything,
I still have 10% chance of survival.

I might get a loan from friends during the plan if I have an emergency for cash.

Most are underwater and negative cash flow, but hoping to strip all the junior loans and crammed down the first.

Please help, give me your opinions. Lawyers are too busy to return calls.

[HHM]

I realize that the real estate is probably valued in the millions (hence the inability to file chapter 13) but if you can't even scrape up $20K to retain an attorney, you don't have any shot of keeping these.

Chapter 11's have tremendous administrative requirements (hence the high fees), the filing fee, alone, is $1039 and that is charged by the BK court.

Here is the BIG catch. It is not enough to simply strip and cram down. You have to be able to refi out at the new principal balance.

For example; if you have a property where you owe $2.5MM, but the property is only worth 1.5MM. You need to "replace" the existing loan with a new loan at $1.5MM. Cram downs must be "bought out", you cannot force the lender to accept the new principal. A cram down is where the court reduces the principal to current market value and you get "new" financing to buyout the crammed down amount. If the cash flow on the properties is too tight, that is never going to happen. Keep in mind, the only thing you can do in a chapter 11 is cram down to current market value, but with current lending, NO ONE is lending at 100% loan to value, so you need to be able to fund the difference out of pocket or with cash flow from the properties.

For example, if the current market value is $1.5MM, you might find a lender to loan you, 1.2MM (80% LTV) but you woulld need to fund, with cash flow from the properties (after payment of the mortgage to the lender who funded 1.2MM) the other $300,000 (or $5,000 per month for 60 months), or find a lender willing to take a 2nd mortgage (fat chance in this market).

Since these properties are in foreclosure, (which means you haven't been paying the mortgage), and you still can't come up with $20K to pay an attorney (presumably, you have been collectiing rents during this time), what chance do you really have (sorry to say).

[bankruptcyme]

ch 11 questions

I never hint that I cannot come up with $20,000 cash to pay upfront for lawyers.

Question: Can I keep all the loans intact and make a payment plans? Thus avoiding a hefty down payment and a new loan for qualification.

Can I strip down some junior loans?

How much it will cost me to get out Ch 11, does it have to be cash for me to pay the US trustee?

Can I administer and be my own trustee?

If all fails, do buyers have to come up with all cash in a public sale?

[jribe]

you are obviously not listening to anyone here. TALK TO A LAWYER! If you are not saying you can't afford the 20,000 retainer, what are you saying? You're too cheap to pay it? You don't want to do what the lawyer is advising you to do? Or are you just being so stubborn that no attorney will represent you?
Like others have said- we are NOT a forum for Chapter 11. Seek an appropriate lawyer- pay the fees and try and get yourself out of the mess you're in.

I never hint that I cannot come up with $20,000 cash to pay upfront for lawyers.

Question: Can I keep all the loans intact and make a payment plans? Thus avoiding a hefty down payment and a new loan for qualification.

Can I strip down some junior loans?

How much it will cost me to get out Ch 11, does it have to be cash for me to pay the US trustee?

Can I administer and be my own trustee?

If all fails, do buyers have to come up with all cash in a public sale?

[HHM]

I never hint that I cannot come up with $20,000 cash to pay upfront for lawyers.

Question: Can I keep all the loans intact and make a payment plans? Thus avoiding a hefty down payment and a new loan for qualification.

Can I strip down some junior loans?

How much it will cost me to get out Ch 11, does it have to be cash for me to pay the US trustee?

Can I administer and be my own trustee?

If all fails, do buyers have to come up with all cash in a public sale?

No, you cannot force the current lender to take a new payment plan (unless the payment plan is 5 years or less). Yes, you can strip junion loans. Generally, there is no Bankruptcy Trustee in a chapter 11, the debtor's attorney acts as the trustee; it is unlikely the court will allow a pro se debtor (a debtor without an attorney) to act as their own trustee and the creditors will probably file a motion to have a trustee appionted.

If the plan fails, the case is converted to a chapter 7, a chapter 7 trustee is appointed, and he will either sell the properties, or allow the lenders to complete foreclosure.

Attorney's are going to cost what they are going to cost. Especially in chapter 11, there is no "discount" option. To be blunt, you already screwed this up enough as it is by filing a chapter 13, don't make the same mistake twice.