I just got hit with a default judgment of $100K! I found out about the judgment when my bank account was levied against and emptied over this. We are trying to get the judgment set aside since I was never served, but if that fails, we will have no choice but to file for bankruptcy.
I am married and we own several pieces of commercial and residential real estate. We also own 2 businesses. The businesses are profitable but only make enough to pay our secured debt and living expenses.
We have over 600K in unsecured credit card debt resulting from a previous failed business. About 40% of this is in my name and about 40% in my wife’s name. The remaining is joint. We have not paid on any of this in over 3 years. We have been sued a few times and have won some and settled some. We thought we could make it past the 6 year SOL this way and avoid BK but now we are no longer sure.
We are too old to have to start over and want to make it out of this with our home and business which is our livelihood. We also have 6 employees that depend on us.
I do not qualify for Chapter 13 and I doubt that I could afford a Chapter 11.
Questions…
1. If only one of us files bankruptcy (the one with the 100K judgment), how does it affect our jointly owned real estate?
2. How about the joint debt?
3. How is the value of the real estate determined for BK purposes?
4. How would our business inventory be valued in a bankruptcy? It has a wholesale cost of about 160K but if sold at an auction it would likely bring less than 25¢ on the wholesale dollar.
5. I am upside down on one of my commercial buildings. I have a 2nd mortgage on this building with an individual person and he is willing to allow the collateral to be switched to another one of my buildings that might be considered to have a little bit of equity. Should I do this and if I do how long must I wait in order that it cannot be un-done in BK?
6. I have an unsecured debt with a bank that also has a first mortgage on another building that I own and I think I could negotiate a deal with them to roll this debt into my secured debt to prevent this building from showing any equity. Again, should I do this and if I do how long must I wait in order that it cannot be un-done in BK?
I am married and we own several pieces of commercial and residential real estate. We also own 2 businesses. The businesses are profitable but only make enough to pay our secured debt and living expenses.
We have over 600K in unsecured credit card debt resulting from a previous failed business. About 40% of this is in my name and about 40% in my wife’s name. The remaining is joint. We have not paid on any of this in over 3 years. We have been sued a few times and have won some and settled some. We thought we could make it past the 6 year SOL this way and avoid BK but now we are no longer sure.
We are too old to have to start over and want to make it out of this with our home and business which is our livelihood. We also have 6 employees that depend on us.
I do not qualify for Chapter 13 and I doubt that I could afford a Chapter 11.
Questions…
1. If only one of us files bankruptcy (the one with the 100K judgment), how does it affect our jointly owned real estate?
2. How about the joint debt?
3. How is the value of the real estate determined for BK purposes?
4. How would our business inventory be valued in a bankruptcy? It has a wholesale cost of about 160K but if sold at an auction it would likely bring less than 25¢ on the wholesale dollar.
5. I am upside down on one of my commercial buildings. I have a 2nd mortgage on this building with an individual person and he is willing to allow the collateral to be switched to another one of my buildings that might be considered to have a little bit of equity. Should I do this and if I do how long must I wait in order that it cannot be un-done in BK?
6. I have an unsecured debt with a bank that also has a first mortgage on another building that I own and I think I could negotiate a deal with them to roll this debt into my secured debt to prevent this building from showing any equity. Again, should I do this and if I do how long must I wait in order that it cannot be un-done in BK?
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