Filing for protection from lawsuits

[indy]

The main reason we are going to file is to protect our selves from the foreclosures that will happen on 2 properties. One of them has a 125000 second.

We have 41k in CC debt but we can handle the payments and they are not late, the only thing that killed us was the rental properites adjusting ect..

Plus we are expecting another child.

My question is this

when the houses forclose our credit is destroyed for 7 years, so isn't it wise to File BK in order to protect our selves from lawsuits and the being 1099ed?

We owe over 1 million in debt right now, and 960,000 of that is real estate and after the properties foreclose we will only owe 500k our main home.

We can manage that ok, but the credit cards I was going to include in the BK.

Will we get grilled because we have 41k on CC that we are including even though the main reason for BK is real estate or I guess you can call it business debt? The credit cards are all paid on time. I have charged up $35000 or so in the past 6 months due to stock market investing that did not go that well. I have record of our losses.

Is that 35000 going to get objected to?

The reason we used that 35000 was becuase we could pay it back with payments if the worst happen in the market. Well the worst did happen in the market but we still paid on them. It is the Real estate that did it to us.

Also it is an ok reason to file BK (to protect our selves from being sued and also being 1099'd?

any thoughts would be great

thanks

Indy

[keepmine]

Nothing unusual in your situation. Preventing lawsuits is the primary reason to file.
I'm sure your trustee has seen similar numbers as more and more homes are foreclosed/

[indy]

that makes me feel better. I feel awful because i took out so much off the credit cards for the stock market, and then my tenants left one of my homes and we have no spare cash to pay the mortgage any more. plus we are so upside down that it will takes years just to break even.

not worth it anymore

[mrbsf]

Is that 35000 going to get objected to?

Not based strictly on the amount.

Also it is an ok reason to file BK (to protect our selves from being sued and also being 1099'd?

Absolutely, this is one of the primary reasons to seek bankruptcy protection.