I think i might need to file.. will i lose my home?

[scorch]

So this is a desperate attempt to get answers.. I searched, but could not find anything.

I own a construction company. And recently 2 companies that owed me money filled bankrupsy and put me in a hard position. In order to make do.. i had to put my expenses on a credit card until i got paid.. But it looks like i wont be getting paid by these companies. And now i can barely keep afloat.

I have over 60k in credit cards, and the interest is 30%.. I called they wont lower the interest.

I was hoping to sell my home, but no one is buying. And im now thinking about filing myself for bankruptcy.

My question is.. will i lose my home if i file?

What i would like is to file. But not lose my home.. I just want to continue to pay my mortgage. My business is slow, but i got enough work to kind of get by if i work long hours and with 2 other jobs at night. But right now, i dont know what to do.

[keepmine]

What state are you in and, how much equity in your home?

[justbroke]

Whether you can save your home depends on many facts that we don't have. The first of which, is how much is it worth and how much do you owe on it (including all liens).

You'll probably need to close your construction business if the weight of your customers has pulled you down. You'll need to evaluate that too. (What is the organization of your construction company... LLC, S-Corp, Sole Proprietor?)

It is truly admirable that you would work long hours, and then work two night jobs on top of that. It really makes no sense to kill yourself, literally and physically, for debt that wasn't created by you. Actually, you should have filed claims in the other Bankruptcies -- I hope you did.

[scorch]

I really dont know much about bankruptcies.. what kind of other claims do i do? I need to talk to a lawyer?

The home is worth about 800k but i owe 400k. Its in maryland. The whole business revolves around home improvement. That is the reason for my work being so slow, that and winter. But now its almost non existent. no one is spending money.

I am the sole owner, and everything is in my name. The home, the credit cards.

[justbroke]

I really dont know much about bankruptcies.. what kind of other claims do i do? I need to talk to a lawyer?

If those client bankruptcies weren't recent, you may have missed the deadline to file a claim. Suffice it to say that you may have lost money on the table.

I am the sole owner, and everything is in my name. The home, the credit cards.

Well, unfortunately, you live in Maryland which has no homestead exemption. So, with $60K in unsecured debt, you are pretty much going to have to find a way to pay the $60K or the property would be sold. That's a lot of equity ($400K). Even if you sold it at a firesale price of $600K, that's still $200K of equity.

Just for future reference, if you are married or get married, always put your home in a Tenancy by the Entireties when in a State like Maryland. This would protect the home from the reach of your creditors. Unfortunately Maryland is just a bad place to own a home and have that much equity.

Not trying to scare you, just letting your know that you have a juicy and ripe asset there. Don't file Chapter 7 until you have a gameplan.

Your strategy could be to file a Chapter 13, but you're need to pay that $60K off in 5 years, so you're talking a $1,000/month payment for 5 years, plus any other attorney and Trustee fees ($100/month for Trustee @ 10%). I think the Chapter 13 would be the only way to "save" the home.

[scorch]

What is this deadline to fill bankruptsy after they filed for bankruptsy... Where do i go about this.. this happened last month i belive. is it too late?

[DeadManCrawling]

What is this deadline to fill bankruptsy after they filed for bankruptsy... Where do i go about this.. this happened last month i belive. is it too late?

Scorch,

What the others are referring to is this:

If someone, or a company, filed BK and owed YOU money, you need to make a claim with the court. You MAY get some money from THEIR filing BK. This is not a guarantee, but it can and does happen.

As far as your home: Are you saying the house is worth 800k and you OWE 400k? That, is, if you sold it, you would receive a check for 400k or so at closing? If so, that is a substantial amount of money and you need to look carefully at MD exemptions and law. That money, from your home, could be at risk in a BK filing.

You really, really, need to talk to an experienced BK attorney. With a business that presumably has assets like equipment, inventory, accounts receivable, bankruptcy is one area you do NOT want to go it alone. For someone in your position, these forums are helpful only to a certain extent. I was in the same position, and learned a lot here, but your circumstances merit a level of expertise that cannot be given on an internet forum. You NEED an attorney, and must find a good one, and the means to pay him or her.

Anything less than expert advice specific to your district will possibly hurt you. I would also be working with your accountant on business aspects of this.

You have too much at risk to not talk to an attorney ASAP. Determining which attorney best fits your needs is something only you can do, and you may need to speak with several before deciding.

I wish you luck,

-dmc

[justbroke]

First, take heed to what DMC wrote above. I should have mentioned those things too, but DMC covered for me. That's the beauty of this Forum! You certainly need legal counsel since you have significant personal and business assets.

What is this deadline to fill bankruptsy after they filed for bankruptsy... Where do i go about this.. this happened last month i belive. is it too late?

You should have received a notice from the Court called a Notice of Bankruptcy. It would have listed a date. If you were never notified, you may want your attorney to review your customer's cases to see if they were asset cases. If they were asset cases and you were never notified, then you could have a cause to have their case reopened and file a lawsuit (complaint) to have them pay you outside the bankruptcy!

Again, much of this needs to be accomplished by and through legal counsel and you should be starting to think about that.

[frogger]

And in addition to what the others said, when looking for an attorney, make sure that you don't go to a bankruptcy mill type attorney.

Find one that knows what they are doing. They are not the cheapest, but they will more than likely save you a lot of money in the long run.

Ask around and find out who the "big boys" that bankrupted used. That's a good starting point.

Good luck.

[BigJohn]

How much is your business assets worth?

Have you had an appraisal done on your home lately?

Do you have a first and second mortgage?


Do you owe on vehicles?