Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Assuming the tax value is an estimate of what the house could sell for, your home has only around $5,000 equity. This means you would be allowed to keep your home if you file a Bankruptcy (as long as you continue to make the mortgage payments), as you are allowed to keep one home with up to $35,000 equity. (Equity is the market value minus the balance on the mortgage.)
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Is the business now a partnership? Who pays the loss each year?
1) There is no exemption for shares of corporations owned by a debtor. This means if you file - and if the Bankruptcy trustee thinks it worthwhile - he can try to sell your interest in the corporation and/or your share of the corporate assets.
2) There is no limit to the amount of debt you can have discharged in a Bankruptcy.