Thanks. The lawyer did not mention there would be ongoing payments. I would have to know how big they would be and how long they would last to make an informed decision. He will only be receiving SS though, so budgeting should be straightforward at least. I also don't like the idea of co-signing on an apartment. I'll meet with the lawyer in a couple days and go over these issues.I didn't read the whole thread but I do have experience on the chapter 13
Yes, his credit score and ability to rent an apartment will be immediately tanked and they're going to stay that way for a few years. You're going to have to cosign unless someone else will, or unless he can find housing that doesn't require credit check such as staying with family or in an Airbnb, or I suppose he could rent something right now before his credit gets trashed, but that doesn't sound like a real option either.
He will have a new monthly bill for years which is the chapter 13 payment plan. I just don't see you mentioning that in your post here, but something you probably know from the lawyer and if not you should absolutely be considering how/whether he can pay that
When you file to open the case, you have to list all the debts and assets and propose the payment plan. So I'm also unclear how you would do that just a week from now. If you don't yet have a graph of all his assets and debts, I'm not sure if the lawyer discussed with you how realistic it is to file to open a case now, but then come through later on if you discover new information.
One angle to consider is since you said his business will need to be sold or liquidated. I don't know if he has business debts and business credit cards, but there is such a thing as filing for bankruptcy before you have even been late on a payment. If he has a large amount of debt in the business and he's worried in the future, they'll come after him. He could file the bankruptcy case now while those bills are still not delinquent if that's even the case and it would protect him from future lawsuits related to winding down the business and leaving certain vendors unpaid.
For the option of not declaring bankruptcy and simply selling the house immediately, what complications should I expect from selling a house that's already in foreclosure? This is all uncharted territory for me.
I did do my best to compile a list of assets and debts at the personal and business levels; I posted them a few posts above this one.
The business is a PLLC. Business and personal bankruptcies would be separate, correct? A business bankruptcy seems inevitable given the business has negative value and there are no prospects for that to change. I'm just not certain about which debts are personal and which are business. There are $31k in legal bills on the business ledger that seem more personal (at least some relate to defending this foreclosure). I have no idea if the law firm would allow those bills/debts to be discharged in a business bankruptcy without a fight.
Statistics: Posted by fyre4ce — Wed Oct 16, 2024 12:42 am