Posted on: 23rd Jun, 2009 03:58 pm
My dtr. plans to file BK on a restaurant that is not making $$ due to the economy. She is in arrears 4 mos. on rent=$54k. She has a Heloc $100k against a mortgage which i am 1/2 owner (even tho it is hers) & she gets all the credit on her income tax return. It is a rental for the last 6 yrs. Which BK should she go? 7 or 13??
if you want to keep the property then chapter 13 is the right chapter and if you want to fresh start immediately without bothering the property then chapter 7 is advisable .
what do you want to do??
keep in touch.......
what do you want to do??
keep in touch.......
Hi
If there an existing mortgage on the restaurant which your daughter plans to include in bankruptcy? Is the HELOC against the restaurant or your primary residence?
"She has a Heloc $100k against a mortgage which i am 1/2 owner (even tho it is hers)..."
Who is the actual owner of the property? You or your daughter or both of you? If both of you are listed on the title, are you both listed on the mortgage as well?
If you file chapter 7 bankruptcy, you will lose your assets, which can include your house, car etc. There are exemptions as well which allow some of your assets to be exempted from the bankruptcy. A chapter 13, on the other hand, is a better option, if you want to keep your assets. However, you will need to make regular payments under the supervision of the court in a chapter 13 plan.
You need to check which type of bankruptcy you qualify for. If your average monthly income for the past 6 months (gross income divided by 6) is less than the state median income, you can file chapter 7. If it is higher than the state median income, you will have to calculate your monthly disposable income (gross income minus monthly expenses). If the total disposable income for 5 years or 60 months is less than 6000, you can file chapter 7. If it is more than 10,000, you need to file chapter 13.
If there an existing mortgage on the restaurant which your daughter plans to include in bankruptcy? Is the HELOC against the restaurant or your primary residence?
"She has a Heloc $100k against a mortgage which i am 1/2 owner (even tho it is hers)..."
Who is the actual owner of the property? You or your daughter or both of you? If both of you are listed on the title, are you both listed on the mortgage as well?
If you file chapter 7 bankruptcy, you will lose your assets, which can include your house, car etc. There are exemptions as well which allow some of your assets to be exempted from the bankruptcy. A chapter 13, on the other hand, is a better option, if you want to keep your assets. However, you will need to make regular payments under the supervision of the court in a chapter 13 plan.
You need to check which type of bankruptcy you qualify for. If your average monthly income for the past 6 months (gross income divided by 6) is less than the state median income, you can file chapter 7. If it is higher than the state median income, you will have to calculate your monthly disposable income (gross income minus monthly expenses). If the total disposable income for 5 years or 60 months is less than 6000, you can file chapter 7. If it is more than 10,000, you need to file chapter 13.