Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
1) Are you asking about a business Bankruptcy or a personal Bankruptcy?
2) What business form do these properties have (corporation, LLC, etc.)?
3) Are these properties separate businesses, or are some owned by the same business?
4) Do the profitable properties have equity? That is, can they be sold for more than the balance - if any - on the mortgage(s)?
5) If they do have equity, how much equity do the properties have?
Sorry, but I may have a few more questions, depending on the answers to these.
1) it is a personal bankruptcy
2) not a corporation...personal rental properties
3) All owned by one person or financially responsible although spouse name is XXXXX XXXXX she is not responsible for the debt.
4) None of the properties have equity now. purchased in 2004/5 prior to the market collapsing. All market values now are less than 40% of the value at purchase.
5) 0 equity, all are upside down.
If you file a Bankruptcy, you have to account for all of the properties in the petition.
However, you would be able to keep any of the properties that you are able to pay the mortgage for - as none of the properties has any equity.
A Bankruptcy can discharge your liability to pay those mortgages - which means the lenders cannot get a deficiency judgments if you do not pay - but if the mortgages are not paid, the lender can foreclose.
I'm not sure if this is what you wanted to know. If not, please let me know.
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