Here are the facts:
1. This is an Alabama Bankruptcy case. $5000 homestead exemption; $3,000 personal property exemption
1. The Debtor makes about 2000 per month income from her restaurant business
2. The Debtor has about 75K equity
in her home and other personal property worth about 4000
3. All relevant debts are in her name personally despite the fact that she has an LLC
4. The Debtor owns a restaurant building which is worth less than approximate $820K that she owes on it. She wants to surrender the building, she does not want to keep it because of structural defects and it is too expensive for her. There is pending litigation, she is a breach of contract
defendant and a breach of warranty, etc. counterclaimant in the litigation.
5. The Debtor has about 7,500 to 10,000 in unsecured debt
6. The main goal of the debtor is to get out of the "bad building" situation
(A) Although she has substantial assets over and above the exemption allowances, can she still go chapter 7
by making an offer in compromise on her unsecured debt and "get from under" the bad building / high secured debt?
(B) If she goes 13 and chooses to surrender the building in the 13, does the debt on the building (secured debt) become unsecured or does she still get to walk away as she would in a chapter 7?