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Protecting my business partner

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    Protecting my business partner

    I borrowed $50K from a friend to buy a package of six foreclosed residential properties. Total purchase price: $100K. Friend decided she wanted to partner with me instead of just be a lender so we now own the six properties together 50/50. I will have to file Ch7 in a couple of months. My biggest concern is protecting her 50% ownership in the properties. My only idea so far: Pay her back her $50K by deeding three of the six properties to her alone, thereby setting myself up to lose my three, if I have to, without impacting her. Could really use some creative ideas and insights.

    #2
    Originally posted by Kirby View Post
    I borrowed $50K from a friend to buy a package of six foreclosed residential properties. Total purchase price: $100K. Friend decided she wanted to partner with me instead of just be a lender so we now own the six properties together 50/50. I will have to file Ch7 in a couple of months. My biggest concern is protecting her 50% ownership in the properties. My only idea so far: Pay her back her $50K by deeding three of the six properties to her alone, thereby setting myself up to lose my three, if I have to, without impacting her. Could really use some creative ideas and insights.
    Surrendering your equity to another would cause you big problems when you file. Don't do anything like this. At all. Don't even consider it.

    What you need to do is have accurate value estimates on the homes so you can ascertain how much equity there is in the homes. (1/2 would be yours) Then look to your states exemptions to see how much you can protect.

    Above all else, talk to an attorney.
    Filed Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
    I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions.

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      #3
      Protecting my business partner

      Originally posted by newbie2 View Post
      Surrendering your equity to another would cause you big problems when you file. Don't do anything like this. At all. Don't even consider it.

      What you need to do is have accurate value estimates on the homes so you can ascertain how much equity there is in the homes. (1/2 would be yours) Then look to your states exemptions to see how much you can protect.

      Above all else, talk to an attorney.
      Thanks newbie. I won't do it. At all. And I'm talking to three attorneys this week. *oy*

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        #4
        Originally posted by Kirby View Post
        And I'm talking to three attorneys this week. *oy*
        That's the best possible thing you can do in this situation.
        All information contained in this post is for informational and amusement purposes only.
        Bankruptcy is a process, not an event.......

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