Posted on: 25th Feb, 2009 11:22 am
i make a high income and own multiple properties. i have not paid my taxes to keep up with mortgage payments and need to start payin on taxes. my accountant thinks i should file chapter 11. i am exploring the options of short sales for some of the properties as if i got rid of a few of them, id be in a position to hang on without going ch 11. i am so upside down however, i cannot afford to make up the differences with the banks assuming they would want me to assume the loss. hence a ch 11 might be the best option. On the other hand, since my income is so high, the courts might make me responsible for the debt anyway. i feel if i can get the banks to sign off on the loans, that might be my best option, also, would a deed in leu be better than a ch 11 bankruptcy? how would all of this weigh on my credit? i have tried to hang on but the banks are not giving loans out hence they are essentially pushing me to this outcome since i will never be able to sell the properties for anywhere close to what they are worth.
please advise. i am sure there are many in my position.
thank you
please advise. i am sure there are many in my position.
thank you
hi jcraigcros
as you have stated that your income is high, it will be difficult for you to qualify for a bankruptcy. if you are already delinquent on your payments, you can contact your lender and apply for a short sale. in a short sale, your property will be sold off by the lender to recover his debts and if there is a deficient amount resulting from the sale of the property, then you will have to pay that to the lender. a short sale lowers your credit score by 75-100 points.
as far as deed in lieu is concerned, it will affect your credit score badly and reduce it by 250 points but your deficient amount resulting from the sale of the property will be forgiven. as far as filing bankruptcy is concerned, it should be your last option. you should first contact the lender and discuss the options of short sale and deed in lieu with him.
thanks.
as you have stated that your income is high, it will be difficult for you to qualify for a bankruptcy. if you are already delinquent on your payments, you can contact your lender and apply for a short sale. in a short sale, your property will be sold off by the lender to recover his debts and if there is a deficient amount resulting from the sale of the property, then you will have to pay that to the lender. a short sale lowers your credit score by 75-100 points.
as far as deed in lieu is concerned, it will affect your credit score badly and reduce it by 250 points but your deficient amount resulting from the sale of the property will be forgiven. as far as filing bankruptcy is concerned, it should be your last option. you should first contact the lender and discuss the options of short sale and deed in lieu with him.
thanks.