Can the bank sue?

[LawRookie]

my situation is that I file Chp 13.
I made a HUGE mistake and invested in out of state vacant land for investment. I did open an LLC but we file as an S-Corp (that is what the accountant says). I had to take out the loans in my name for the vacant land but the deed is in the company name. I opened the company thinking that I can be protected from this situation but since the loans are in my name I had to file Chp 13. Could not get loan in company name since it was new and no credit history. Ok so now the vacant land was originally purchase for 200K now lots in same place are for sale in 20K-50K range. This happens to be TONS of foreclouser sales there now cause a BIG A$$ scam that happened and other are trying to sue.

I just basically file Chp 13 and I'm surrending the investement lots (vacant land) and paying the unsecure debt 100 cents on the dollar (paying the unsecure debt at 100%).

So the question is can the bank sue me for deficiency?
What is the tax consequence? I was filing as S-Corp and company has no assest other then the vacant land.

Can they garnish my wages? I'm a w-2 worker with great pay.
Can they drain my savings and checking account?

[falken]

my situation is that I file Chp 13.
I made a HUGE mistake and invested in out of state vacant land for investment. I did open an LLC but we file as an S-Corp (that is what the accountant says). I had to take out the loans in my name for the vacant land but the deed is in the company name. I opened the company thinking that I can be protected from this situation but since the loans are in my name I had to file Chp 13. Could not get loan in company name since it was new and no credit history. Ok so now the vacant land was originally purchase for 200K now lots in same place are for sale in 20K-50K range. This happens to be TONS of foreclouser sales there now cause a BIG A$$ scam that happened and other are trying to sue.

I just basically file Chp 13 and I'm surrending the investement lots (vacant land) and paying the unsecure debt 100 cents on the dollar (paying the unsecure debt at 100%).

So the question is can the bank sue me for deficiency?
What is the tax consequence? I was filing as S-Corp and company has no assest other then the vacant land.

Can they garnish my wages? I'm a w-2 worker with great pay.
Can they drain my savings and checking account?

They will sell the land and file a claim with the bankruptcy court for the deficency. It will be treated as a general unsecured claim along with the rest of your unsecured claims, so your payment will go up (provided they file a claim).

They can not sue you or anything like that, it all goes through the bankruptcy court.

[LawRookie]

So if they file for the deficency my payment can go up. Crap I'm already paying $1500 a month and I have to take money out of the saving to make that. I can afford more money a month if I could I wouldn't file for bankruptcy.

I thought they would foreclose on the vacant land (which I'm surrendering thru the bankruptcy (Chp 13) and sale it at the auction or open market. And if there was a deficency the bank could try to collect but most offend the bank doesn't file for deficency.

What if I get laid off ? Or find a job that pays a lot less (which is very possible in this economy) What happens to these $1500 payments?

[Kingxray]

I think what falken meant was that when the bank forecloses and sells the land they can file a claim for the defiency and if they do that it may make your C13 payment plan go up. If you are filing C13 I would stop making payments on the land right away. Once you file you are immediately under bankruptcy protection and they can't do anything to you. We surrendered a house and stopped making mortgage payments before we filed and the bank has since proceeded with foreclosure and nothing else. Anyway that is the way I understand it. You can always check with your lawyer to be sure.

[ckymky]

Isn't it true that they have to file within the 90 days after you file in order to be considered as part of the unsecured. They can't tack it on after the 90 days and increase your payment, can they?