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    Am I doing this right?

    We're looking to file Ch7 this week, and this forum has been so helpful! I've had to read as much as possible in a short period of time. Researching bankruptcy and pulling papers together is all I've done for the past couple of weeks.

    My story: horrible sudden sickness last summer, leading to lots of medical bills and inability to work (even now). Credit card bills up the wazoo, part of which was to support my disabled mom. I knew it would be tight, but I've paid off big debts before - and then that hospitalization just blew it all. Last payments to medical providers and credit cards was November 2008.

    My husband and I have two multi-unit rental buildings that have been bleeding for a while, but more so lately. One out of state house with a nonpaying tenant. One local house that was just vacated by another nonpaying tenant. All but the out of state house will be foreclosed next month. One of the buildings had a balloon 2nd mature last fall, but we couldn't refinance, and they sued. At which point we abandoned all our deed-in-lieu and workout plans and just got a bankruptcy lawyer.

    We have four cars, of which we really need two. My minivan (for my mom and her scooter) is paid off and worth about $5600. Actually my mom deeded it to me 3 years ago, but that probably doesn't matter. My husband got an SUV in November 2008, no equity. Can he reaffirm the note (in his name) with USAA if I'm discharging a big USAA credit card (in my name)? The other two cars are worth $1,500 and $12,500 (paid off). I'd really like to keep my convertible, but it may not happen.

    Other questions - can I sue the out-of-state tenant for the back rent? I put it down as an account receivable on the forms. I don't care to evict her, but she has assets.

    We may get another month's rent from one of the buildings next week - can we take that money if we've filed by then? Can we spend it on things like dental work, car repair, plumbing? I've been putting those things off.

    Although what I'd REALLY like to do is put it away somehow for our medical deductible. We're at about $400/month for medicines and doctors (which don't count for deductible or out-of-pocket). If any big medical thing happens again, we're hosed.
    Filed non-consumer no asset Chapter 7 on 7-12-10 after 4 foreclosures, 7 lawsuits including 2 deficiencies, 2 wage garnishments, a bank garnishment and a partridge in a pear tree. 341 held on 8-11-10. Discharge 11-4-10.

    #2
    I'll let other, more knowledgeable people answer your questions, but just wanted to say that you're not alone as a bleeding landlord.

    The tenant pool could be compared to a cesspool in our area. They have bled me for years and I'm getting ready to get out too.

    Best of luck to you.
    All information contained in this post is for informational and amusement purposes only.
    Bankruptcy is a process, not an event.......

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      #3
      Don't know about the USSA question but, you'll be asked at the 341 meeting if anyone owes you money or, can you sue anyone. If you sue, any proceeds will be property of the bk estate .
      Any rent you collect post filing will likely be property of the estate unless you can exempt it.
      I'd ask my lawyer how to proceed.

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        #4
        We have USAA insurance. We are bk 2 cc's from them spoke with three different people that said the same thing...they can not cancel our policy unless they have to reissue a new one (in a new state) and if our payments are still on time. HTH

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          #5
          Thank you, everyone. Every day I learn more, and it's a good thing.

          I will never touch the real estate business again! We found out that our recently-vacated tenant painted my crystal chandelier!
          Filed non-consumer no asset Chapter 7 on 7-12-10 after 4 foreclosures, 7 lawsuits including 2 deficiencies, 2 wage garnishments, a bank garnishment and a partridge in a pear tree. 341 held on 8-11-10. Discharge 11-4-10.

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            #6
            As far as keeping your cars, you will need to do a search to find out what exemption you have available in your state and if you have the option to take federal exemptions. This will be a dollar amount of property you can keep. like 1 vehicle up to $5000, household items up to $10k etc.

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