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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I borrowed $ on my business in 96. I am the grantor on the

Resolved Question:

I borrowed $ on my business in 96. I am the grantor on the security deed and the Corp is the guarantor. The creditor has foreclosed and showed up with the cops and told me to leave. I filed a 13 two weeks ago. No writ of possession papers have been filed. Will I be able to keep the business property under a 13?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
1) Are you the sole owner of the corporation?
2) Who owns the property in question - you personally or the corporation?
3) Does the property in question have any equity? (Equity = current market value minus the balance on any mortgage.)
4) If yes, how much equity does the property have?
5) Was the loan a personal loan, or was it personally guaranteed by you?
6) Did you include this creditor in you Chapter 13 paperwork, or did you only file the emergency petition?
Customer: replied 5 years ago.

1) Yes

2) Corporation

3) No equity
4) 0

5) It was a personal loan and the corporation was the guarantor.

6) It was included in the 13 paperwork.


The Corp was void on 3/1/1995 and the loan was executed on Oct 26 of 1995. The closing atty did not think that it was a big deal since I was the sole owner.

Expert:  cfortunato replied 5 years ago.
Since you are the sole owner of the corporation, anything owned by that corporation is also owned by you. Accordingly, that property does become part of your Chapter 13 Bankruptcy estate.
However, since there is a loan being secured by that property, the loan would have to be satisfied in order to keep the property. You would be allowed to pay the loan arrears over the life of the Chapter 13 plan, in addition to the regular monthly loan payment.

I think this is what you wanted to know. If not, please let me know.
Thank you.
Customer: replied 5 years ago.
As long as I can file the 13 and keep the bldg that will work. Is this solid advice?
Expert:  cfortunato replied 5 years ago.

This is not legal advice - it is legal information.


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