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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2815
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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We live in Ohio. My wife and I own a 4-unit apartment house.

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We live in Ohio. My wife and I own a 4-unit apartment house. The mortgage balance is $105,000. The monthly income from rents is approximately equal to the expenses. We lived in the building for 12 years from 1980 to 1992. The market value of the property is approximately $135,000 in a "duress" sale. If we file Chapter 7 bankruptcy will we be forced to sell the property? What effect if we moved back into the property as our residence prior to filing? Thanks for any information.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 6 years ago.
If you live in the property, you can exempt $20k of the equity. So, if it is worth, 135, and you owe 105k, subtracting the exemption of 20k, and the estimated cost of sale, would put you right at the break even point. If these numbers hold up, then there wouldn't be much equity for the trustee to liquidate. Since you are close, you should get an appraisal, and then review it with your local bankruptcy attorney to run the numbers to confirm the chapter 7 is the best avail option. If there is too much income or still too much equity, then the chapter 13 may be your best alternative, where you would pay back enough of the debt to protect the equity. Talk it over with your lawyer who can determine what is best based on your facts. But, based on the info provided, you have a shot at chapter 7. Good luck and thanks for your question.
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