I'm new here - this is my first post. I will try to be brief and am hoping for some opinions on the matter. Thanks so much in advance for even reading this, and especially for all the very valuable guidance I've already recieved!
So here it goes. My husband and I are both self-employed, own an S-Corp whic has been our only source of income for 8+ years.
Our house in SoFL is extremely underwater and our business took somewhat of a hit during the last year or so. Still hanging in there, but have pretty much used up all our resources to keep the biz going. We need a fresh start, and hanging on to our house is not in the picture. At this point it will be a relief to get rid of the burden.
In FL they can come after us for the deficiency. We don't want that haunting us - so we will allow the house to foreclose and file BK 7 on the def and include all our CC debt - all personal. Our biz does not have any debt or owe anyone. Our biz does not have any assets (other than ourselves) and we are a COD biz - so no outstanding receivables. The BK lawyer we spoke with agreed that a trustee will most likely NOT try to take our biz, simply because without us, there is no biz or reason for someone to pay up.
OK, so here's the deal. Where we stand right now, based upon our last year sales/income we can qualify for a Chapter 7.
However, our business IS picking up (not enought to make a difference yet, but the tides are turning), we don't want to hold back sales because of the impending BK.
Not to mention, we want to save as much money as we can while going thru the foreclosure & not paying the mortgages or CC's. If however, we wait to file BK as we've been advised to do, a year or two down the road when the bank gets sale date, the trustee will take all those savings. So herein lies the problem.
We've been advised by our 2 lawyers: 1)fight the foreclosure, then when they get a sale date - 2)file BK - affording us a minimum of 18 months to 2 years, rent free. In the meantime, unless we "hide" money, we cannot grow our business & cannot save money if we plan do a BK7 down the road.
So my question is, if we go ahead and do a chapter 7 right now, without reaffirming mortgages (we have 2) would that speed up the Banks to finalize the foreclosure? If so, how fast can a bank speed up the process, when there actually IS a lawyer attempting to "fight" it?
Does filing BK 7 take all the fight out of us?
Anyone do a chapter 7 FIRST and then try to prolong the foreclosure, with the intentions of saving money for things like 1st, last, security in a rental and a general emergency fund?
We are really hoping to use the time going thru this mess to allow us the time to save up some money...it would take the sting away a little, not to mention be a necesity for us to get on with our lives.
12-18 months would be ideal. I'm just afraid that if we go ahead with the BK 7 now, without reaffirming the mortgages, the banks will become aggressive with getting the foreclosure finalized, knowing we have no intentions of working with them.
I should note, my 2nd has already served us.
Thanks again for reading my post - i really do appreciate any feedback.
So here it goes. My husband and I are both self-employed, own an S-Corp whic has been our only source of income for 8+ years.
Our house in SoFL is extremely underwater and our business took somewhat of a hit during the last year or so. Still hanging in there, but have pretty much used up all our resources to keep the biz going. We need a fresh start, and hanging on to our house is not in the picture. At this point it will be a relief to get rid of the burden.
In FL they can come after us for the deficiency. We don't want that haunting us - so we will allow the house to foreclose and file BK 7 on the def and include all our CC debt - all personal. Our biz does not have any debt or owe anyone. Our biz does not have any assets (other than ourselves) and we are a COD biz - so no outstanding receivables. The BK lawyer we spoke with agreed that a trustee will most likely NOT try to take our biz, simply because without us, there is no biz or reason for someone to pay up.
OK, so here's the deal. Where we stand right now, based upon our last year sales/income we can qualify for a Chapter 7.
However, our business IS picking up (not enought to make a difference yet, but the tides are turning), we don't want to hold back sales because of the impending BK.
Not to mention, we want to save as much money as we can while going thru the foreclosure & not paying the mortgages or CC's. If however, we wait to file BK as we've been advised to do, a year or two down the road when the bank gets sale date, the trustee will take all those savings. So herein lies the problem.
We've been advised by our 2 lawyers: 1)fight the foreclosure, then when they get a sale date - 2)file BK - affording us a minimum of 18 months to 2 years, rent free. In the meantime, unless we "hide" money, we cannot grow our business & cannot save money if we plan do a BK7 down the road.
So my question is, if we go ahead and do a chapter 7 right now, without reaffirming mortgages (we have 2) would that speed up the Banks to finalize the foreclosure? If so, how fast can a bank speed up the process, when there actually IS a lawyer attempting to "fight" it?
Does filing BK 7 take all the fight out of us?
Anyone do a chapter 7 FIRST and then try to prolong the foreclosure, with the intentions of saving money for things like 1st, last, security in a rental and a general emergency fund?
We are really hoping to use the time going thru this mess to allow us the time to save up some money...it would take the sting away a little, not to mention be a necesity for us to get on with our lives.
12-18 months would be ideal. I'm just afraid that if we go ahead with the BK 7 now, without reaffirming the mortgages, the banks will become aggressive with getting the foreclosure finalized, knowing we have no intentions of working with them.
I should note, my 2nd has already served us.
Thanks again for reading my post - i really do appreciate any feedback.
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