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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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How adverse will a bankruptcy effect my assests if it happens

Resolved Question:

How adverse will a bankruptcy effect my assests if it happens on a second home? I am the mortgage holder for a short term rental home near Disney in Orland. The mortgage is in my name while the deed to the house is held in an S corp. Our corp is made up of 5 friends. The mortgage was put in my name (mistake) because of my credit rating. We got a much better deal on rates going with an individual then as a corp. We owe $216K on the house. We have it listed with a Realtor as a short sale for $165K. So far no bites. Two of the members in our group want to just walk away form this Chase mortgage. Since the note is in my name I think its a bad idea. We are current with the note.
How would that affect me personally (I own a primary resident in Chicago area), have money in a bank account, and do not have any credit card issuess
Any thoughts? Can the bank go after my house, and other assests (car, bank account, 401K, IRA)? Thanks..
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.
Please confirm that you are a resident of Illinois
Customer: replied 7 years ago.
I live in Illinois, the house is located in Florida..
Expert:  Ellen replied 7 years ago.
Hello,

When a property is foreclosed in Florida, a judgment can be entered by the court for any amount of the loan that remains unpaid. This is called a deficiency judgment. The deficiency judgment can be used to execute on other property held by the debtor. There are some assets that are exemption from attachment. Here is a link so that you may view them -- please note that these exemptions apply both in bankruptcy and out:
http://www.bankruptcyinformation.com/IL_exemp.htm

Customer: replied 7 years ago.
Since I am the only one on the martgage, am I the only one they will go after? Can I in turn go after my friends to recoup a portion of my loss?
Expert:  Ellen replied 7 years ago.
Since I am the only one on the martgage, am I the only one they will go after?
Yes

Can I in turn go after my friends to recoup a portion of my loss?
Yes
Ellen and 2 other Bankruptcy Law Specialists are ready to help you