LLC and Bankrupsty
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LLC and Bankrupsty
In my divorce I was awarded one mortage free (rental) property and a huge amount of debt. My income has diminished and I cannot find any way to meet my obligations. If I were to deed the property to an LLC and then file bankrupsty would it protect my one investment? I have hit bottom.
Asked on June 12, 2009 under Bankruptcy Law, Kansas
B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Probably not. You would still own the LLC, and your interest in the LLC would be an asset. However, if you still have some earned income and a positive cash flow from this property, it is possible that you could find a way through this without losing the building. You might be able to get a mortgage loan on the building to consolidate the debt with a longer and lower-interest repayment schedule. Or, a Chapter 13 proceeding might be worth looking into.
I think you absolutely need the help of an experienced bankruptcy attorney. Give him or her all the details of your financial situation, to get reliable advice on what to do next. One place you can find a qualified lawyer is our website, http://attorneypages.com
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