Can I save a small commercial building that I own if I file bankruptcy?

Property is in foreclosure for almost 2 months due to non-payment or partial payment of monthly mortgage payment due to family illness a while ago. Property is leased for a while now and monthly tenant’s payment is enough to cover regular monthly mortgage payment and a second payment if it could be set up toward balance odd (amount that foreclosure was filed for). I bought it 13 years ago and I really want to keep it.

Asked on January 21, 2013 under Bankruptcy Law, California

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

If you file a Chapter 13 bankruptcy you can stop your foreclosure and most likely keep your property.  A Chapter 13 allows you o set up a plan to pay off your debt.  There is also something known as a "cramdown" that can allow you A "cramdown" in a Chapter 13 bankruptcy allows you to reduce the principal balance of a debt  to the value of the property it is secured by like i an investment property mortgage.  Seek help as soon as you can.  Good luck.


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