How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Maverick Your Own Question
Maverick, Lawyer
Category: Real Estate Law
Satisfied Customers: 6422
Experience:  20 years professional experience
Type Your Real Estate Law Question Here...
Maverick is online now
A new question is answered every 9 seconds

Hey, I am going to let a rental property I am upside down in

Resolved Question:

Hey, I am going to let a rental property I am upside down in foreclose. The note is in my personal name not the business. Can the bank come after the assets of another sub-s corporation I own? If yes, how can I protect these sub s assets and my home?
Submitted: 6 years ago.
Category: Real Estate Law
Expert:  Maverick replied 6 years ago.

Welcome to Just Answer! My name isXXXXX very much enjoy what I do and I hope that you will benefit from this information.


Unfortunately, the bank can seek a deficiency judgment against you non exempt assets and try to garnish your bank accounts and wages. The stock you hold in the S corporation is an asset that the creditor can obtain a charging order in and sell for market value of the shares in order to obtain money for the debt. Also, GA only allows you to exempt 10k in equity in your home, so , yes, your house is at stake also.


You may want to consider filing a chapter 13 bankruptcy and applying what is called a "cram down" on the rental. The BK court should allow you to shave the debt on the rental down to match the FMV of the rental. This will lower your payments and the chapter 13 will allow a 3-5 year payment plan to pay back arrears.



If you need more clarification or follow up information, please feel free to write back as there is no extra charge. Otherwise, please click on the ACCEPT button. Even if you have put in your payment information, I receive no credit for my time unless you press "ACCEPT".

Sometimes the law does not give you the outcome that you may have anticipated. Please understand that this is not the attorney's fault. We are assuming that you are paying for an honest and professional opinion.

Please know that there may be a delay between your follow up question and my answers because I may be helping other customers. Rest assured, I will get back to you. In the meantime, you can learn more about me by clicking on my name at the bottom left hand corner of the screen.

This information is provided so you may better discuss legal issues with your attorney. Consult a local attorney for legal advice before acting. You may be able to find an attorney in your area to further assist you at or


If you feel that I went an extra step to help, a bonus would be greatly appreciated! Also, please know that you can always request me for a future question by starting your new question with "This question is for Maverick".





Maverick and 2 other Real Estate Law Specialists are ready to help you
Customer: replied 6 years ago.
Hey, I did accept your answer and thanks. If I made my sub s corp an LLC could they still come after its assets? Can I sell my LLC to my son and have them not come after it? Really looking for a way to get out of this property. The bank should never have let me make the deal.
Expert:  Maverick replied 6 years ago.

The interest that you hold in an LLC or a corporation can be made the subject of a charge order. Creditors sometimes do not spend the time and money to discover that you have such an interest, but it may show up on your tax returns which they can get from you in discovery.


There are a number of ways to try to protect yourself but at this stage of the game, any transfer is subject to a fraudulent conveyance attack and the creditor can ask the court to undo the transfer.

Customer: replied 6 years ago.
Hey Maverick. On this rental property: I am due to renew the note. They are going up from 6.25% fixed to a 7.25% variable rate. Would renewing the note and then not paying buy me more time. Sorry if that sounds stupid.
Expert:  Maverick replied 6 years ago.

It may, not really sure what the terms of the renewal process may involve but it may extend the process a month or two.