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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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We have 200k+ in medical bills. If we have to file bankrupcty which we do not want to do,

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We have 200k+ in medical bills. If we have to file bankrupcty which we do not want to do, can we keep our rental condos or is there anyway to protect them. They are the only savings we have, no 401k Iras, stock...We have our own small business and the condos do not have much equity now but someday they will. Our credit has been destroyed in the past 2 years and we will never be able to buy them again.
Welcome to JustAnswer,

I am happy to provide you with information concerning your question

Please tell me what type of business you have and the value of the business
Customer: replied 5 years ago.
We are a little property management and cleaning business. Because we have no reitrement of any kind we starting buying and fixing up condos and renting them so we can sell them down the road for retirement. Our business has no value. We are paid month to month based upon the work we perform.

You may want to consider a chapter 7 bankruptcy as it appears that you would be able to retain the rental properties and the business and eliminate the medical bills. I will explain.

As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.

A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. You may have to surrender assets, if any, that exceed your exemption. However if everything you own is exempt, you should lose nothing but your debts.

A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt over a 3 -5 year period. However, you may retain assets that exceed your exemption.

Here are the exemptions for Colorado:
Customer: replied 5 years ago.
Hello, I do not understand the exception? What does that mean?
Exemptions are the items that you can keep in a chapter 7 bankruptcy. Since the rental houses do not have any equity, you would typically be able to keep the rental houses. Likewise, since the business does not have a value to a 3rd party, you would typically be able to keep the business
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