Weird question re unsecured debt limits .

[ColoradoBell]

I'd like to keep options open between 7 and 13.
But there could be a problem with an investment property I bought in
2007. I used my share of a property owned with my ex as collateral.
He complained to the divorce judge that it compromised the sale of the property
so the judge voided the DOT . The loan then became 'unsecured', but I kept
my payments up to date. (Luckily, the investment partnership is with just one other partner who said it was ok unless and until the collateral sold and I didnt pay off the investment loan.)

Including this debt with my other unsecured debt puts me over the limit ($336k)
I can't pay down the debt can I ? because that would be preferential? Can I sell part of the investment to reduce the amount of debt? Or should I just forget about 13?

[justbroke]

Paying down secured debt is not preferential.

Yes, please check the secured debt limits that changed on 4/1/2010. They were about $336K prior to that date. I believe it's $360K now.

[ColoradoBell]

I checked and you are right (as usual) bout the limits:

The new debt limits effective April 1, 2010 will be $1,081,400 for secured debt and $360,475 for unsecured debt. This change represents about a 7% increase in the allowed debt limits.

Lastly, to count towards these limits, debt must be liquidated and non-contingent.

A liquidated debt has a fixed or easily calculable amount as compared to an unliquidated debt where liability exists but the exact amount of that liability is unknown.

A non-contingent debt is owed whereas a contingent debt may or may not be owed depending on some other event happening which is necessary to fix the liability.

I wonder if my investment loan is 'contingent' because as lots sell the amount of the loan goes down?

[catleg]

I don't think so.
Contingent normally refers to a debt of a partnership or corporation which is also personally guaranteed by one of the owners. (as a backup).
Non-liquidated is normally an in-progress lawsuit.
Disputed is just that.

[Flamingo]

To the OP...you are delving into areas where you need expert legal advice. As I suggested to you in a posting in another thread you did in regard to your situation, call your state bar association (look in your phone book under your "State" section or it may be listed in the yellow pages along with listed "Lawyers")...when you get complicated scenarios pop up such as yours (i.e., investment partnership), to protect yourself I would highly suggest you make that call and ask for referrals for attorneys in your area that have exptertise in complicated divorce, partnership or business bankruptcies. Best of luck to you...

[HHM]

Contingent goes to whether the obligation actually exists as of the day of filing (could you pay it at the time of filing). This sounds like a non-contingent claim. You know how much it is and can pay it at any time.

Flamingo, to be fair, the Colorado State Bar referral system is nothing special, it is simply a list, no vetting takes place.