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socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 39048
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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I asked you a question a few days ago about a potential BK

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I asked you a question a few days ago about a potential BK when I own multiple properties. I appreciated your answer. If I want to keep certain rental properties and can not afford to do a Chapter 11 BK can I put my properties in LLC's to protect them from liens on losses from the 2 properties that I most likely will lose to foreclosure or short sale?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 7 years ago.

I want to keep certain rental properties and can not afford to do a Chapter 11 BK can I put my properties in LLC's to protect them from liens on losses from the 2 properties that I most likely will lose to foreclosure or short sale?

 

A: No. That's what is called a fraudulent transfer. The bankruptcy trustee or your creditors if you don't file bankruptcy, could ask a court to void the transfers, because they were intended to defraud, hinder or delay the creditor's/trustee's recovery.

 

I don't know the debt allocation of the various properties, but if you were to give up enough of the to get your total secured debt under the $1,081,400 limit, then you could file Chapter 13, which would be considerably less expensive.

 

Hope this helps.

 

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