Protecting my business partner

[Kirby]

I borrowed $50K from a friend to buy a package of six foreclosed residential properties. Total purchase price: $100K. Friend decided she wanted to partner with me instead of just be a lender so we now own the six properties together 50/50. I will have to file Ch7 in a couple of months. My biggest concern is protecting her 50% ownership in the properties. My only idea so far: Pay her back her $50K by deeding three of the six properties to her alone, thereby setting myself up to lose my three, if I have to, without impacting her. Could really use some creative ideas and insights.

[newbie2]

I borrowed $50K from a friend to buy a package of six foreclosed residential properties. Total purchase price: $100K. Friend decided she wanted to partner with me instead of just be a lender so we now own the six properties together 50/50. I will have to file Ch7 in a couple of months. My biggest concern is protecting her 50% ownership in the properties. My only idea so far: Pay her back her $50K by deeding three of the six properties to her alone, thereby setting myself up to lose my three, if I have to, without impacting her. Could really use some creative ideas and insights.

Surrendering your equity to another would cause you big problems when you file. Don't do anything like this. At all. Don't even consider it.

What you need to do is have accurate value estimates on the homes so you can ascertain how much equity there is in the homes. (1/2 would be yours) Then look to your states exemptions to see how much you can protect.

Above all else, talk to an attorney.

[Kirby]

Protecting my business partner

Surrendering your equity to another would cause you big problems when you file. Don't do anything like this. At all. Don't even consider it.

What you need to do is have accurate value estimates on the homes so you can ascertain how much equity there is in the homes. (1/2 would be yours) Then look to your states exemptions to see how much you can protect.

Above all else, talk to an attorney.

Thanks newbie. I won't do it. At all. And I'm talking to three attorneys this week. *oy*

[frogger]

And I'm talking to three attorneys this week. *oy*

That's the best possible thing you can do in this situation.