Question: I want to keep my investment properties when I file for bankruptcy. I bought a few investment properties about 5 years ago. I have them rented and they are income-producing properties for me. The rents pay the mortgages on the properties so I'm not losing any money with them, even when I have to make repairs and sometimes evict a tenant for not paying rent. I'd like to keep the properties and maybe sell them when I retire and then I can use that money to live on, or I'd like to just keep them and collect the rents.
But right now I need to file bankruptcy because my debts are way too high. I'm just making the minimum payments on my credit cards and at that rate I'll never pay them off. It's like I'm not getting ahead, I'm just getting into more debt. And I have medical bills that are simply unaffordable on my income.
I need to know if I can keep my investment properties if I file bankruptcy. Because I might not file if I have to give them up. A couple of properties are in North Georgia and a couple are near Lake Oconee.
C.K. in Cherokee County, GA
Answer: If you want to keep all of the properties, you very likely can by filing a chapter 13 bankrupcty. A chapter 13 enables people to keep many assets that might be a problem if they were to file a chapter 7. We have helped many clients retain their primary residences, second homes and investment properties when filing for debt relief.
In a chapter 13 bankruptcy, you can pay back a certain percentage of your debt, usually over 5 years. That percentage can vary greatly between individuals who file for bankruptcy, because everyone has a unique financial situation.
Sometimes having too much equity in your house, owning a vacation house or rental properties can trigger a chapter 13. To best determine which bankruptcy solution is best for you, we perform a financial assessment where we look at your entire financial situation in detail.
As Cherokee County bankrupcty attorneys, we have helped many people get real solutions to their debt issues. If you are in need, call us now at (678) 712-8561.
Let attorneys Valerie Sherman and Bill Sherman and the talented team at the Sherman Law Group will help you navigate the entire bankruptcy process. We do all of the paperwork for you and do everything necessary with the court and the trustee's office.
We proudly serve the entire Atlanta metro area and North Georgia.