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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 38910
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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Hello, My company (single member llc) went out of business

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My company (single member llc) went out of business 12/31/2012. With that I inherited personally guaranteed lines of credit and credit cards $40,000 and $36,000. I've been making the minimum payments every month however the bank has now increased the minimum payments by 450%. I've never been late or have missed a payment. I am considering bankruptcy as I only make currently $2200 a month. I do have a home in my name which I still owe $91,000 that I since have moved out of and I am renting out to pay off the mortgage debt. I would still like to keep that home and would like to know how I can discharge the remaining debt?

In which state jurisdiction is your home located?
Customer: replied 3 years ago.

Colorado is the home with the mortgage and my LLC owns two in Florida which I transfered over from my name in 2012. My wife is the member of those LLC's now.

Under the Colorado exemption system, homeowners may exempt up to $60,000 of their home or other property covered by the homestead exemption. The homestead exemption is $90,000 if the homeowner, his or her spouse, or dependent is disabled or 60 years of age or older.

If you want to hang onto any equity in the property, then you must occupy it as your principal residence before you file for bankruptcy.

Once you do that, you can discharge your other debt and hang on to the home. The mortgage, however, is not dischargeable -- nor are any homeowners association fees or property taxes, so you must continue to pay these debts.

Hope this helps.
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