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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I am way underwater on my rentals. Due to my water and insurance

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I am way underwater on my rentals. Due to my water and insurance increases combined with low rental income, my 2 properties have made me consider the big B. I owe $30k on each and they worth about $12 each. Should I incorporate first? I have not filed taxes yet and expect some money $3K and I have an outstanding auto claim that I should get $5-12K. Should I settle this 1st and pay off some of my wife's CC debt? I am willing to file Ch. 13 for myself and settle my rentals and some debt? We share about $40k in CC alot is due to the rentals but the rentals are in my name only. I loose about $3k per year on the places and alot of time. B is my only real solution here what steps should I do B4 the B? We own our home but owe on it with no equity, we own 2 cars but no other real stuff.

cfortunato :

Hi - my name is XXXXX XXXXX I'm a Bankruptcy and Consumer Protection attorney here to assist you.

cfortunato :

What is the auto claim for?

cfortunato :

What is the auto claim for?

Customer:

Inj Ax I was hit from behind. I am trying to settle this myself. I do know what I am doing with this.

Thank you for your response.

 

Thank you for your response.

1) There would be no advantage to forming a corporation before filing a Bankruptcy. Whether your rental properties are owned by a corporation or by yourself personally, you would be able to keep those properties if they are underwater.

2) It would not make sense to use your settlement money to pay credit card bills, as one is supposed to stop paying credit card bills as soon as one has decided to file a Bankruptcy. If more than a certain amount is paid to any one creditor less than 90 days before filing, the Bankruptcy court can order those credit card companies to return the money, so it can be distributed to all creditors.
3) It is usually recommended that debtors file their return and receive and spend their refund (on everyday living expenses) before filing a Bankruptcy. If a debtor has not yet received their refund before filing, the Bankruptcy trustee can take all or most of the refund when the debtor receives it.

4) Personal injury awards are exempt (protected) up to $23,000, so it would not be necessary to settle this claim before filing a Bankruptcy.

I am not sure if I answered everything you wanted to know. If not, please let me know.

Thank you!

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