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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 11626
Experience:  JD, MBA
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I have a business that is not doing well right now. I purchaced

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I have a business that is not doing well right now. I purchaced a building that I cant afford owe more than its worth and its attached to my home is there anything I can do
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  TJ, Esq. replied 5 years ago.
Hi. Can you provide a little more information? What kind of entity is your business? For example, is it a corporation, LLC, sole proprietorship? Did you personally guarantee the debt? You mentioned that you used your house as security, so I assume that you did personally guarantee it, but please clarify.
Customer: replied 5 years ago.
Expert:  TJ, Esq. replied 5 years ago.

Hi again.

If your business is a sole proprietorship, then you are generally liable for all of its debts. In addition, since your house was used as collateral for the debt, it can be foreclosed upon if you default on the loan. Unfortunately, while a personal bankruptcy can eliminate the debt such that you no longer owe it, that doesn’t prevent the lender from foreclosing on your house since consensual liens are not generally eliminated in bankruptcy.

Therefore, I’m sorry to say that your options are quite limited. All you can do is talk to the lender and try to work something out so that you can save your house … perhaps a payment plan in exchange for not filing for bankruptcy.

Have I satisfactorily addressed your concerns? If not, then please feel free to ask for clarification.

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