Chapter 7
Chapter 13
Chapter 11
Voluntary and involuntary
Determining eligibility
Asset evaluation
Exemption analysis
Collections
Enforcing judgments and orders
Writs of execution
Motions for relief of stay
It is our belief that bankruptcy is an essential tool for any real estate lawyer. If things go badly for either a creditor or a debtor, bankruptcy is often where the case ends up. When we represent creditors, we often go into bankruptcy court to state our claims to assets and to get reliefs of stay where appropriate. Likewise when we represent debtors, we often file bankruptcy as a last resort or as a strategy to gain time or preserve assets.
Potential Bankruptcy Filers
In any bankruptcy, a determination must be made as to your eligibility. Generally speaking, this is based on how your income compares with the State’s median income. Also in any bankruptcy, a determination must be made as to what debts or portions of debts can be eliminated, and what assets or portions of assets can be shielded from creditors. Timing is an important consideration in any bankruptcy as well. Timing determines what state’s version of the federal bankruptcy laws applies, and it determines whether or not certain transactions can be set aside as preference or avoidance.
If you have real estate threatened with foreclosure and are considering bankruptcy, it is essential to know how foreclosure and bankruptcy interact. This is the only way to strategically plan the best strategy to preserve your assets. Several factors should be evaluated before making decisions regarding foreclosure and bankruptcy. For example, whether or not you are liable for a deficiency judgment, whether or not you can save any equity in a bankruptcy, whether or not you should offer a deed in lieu of foreclosure or a short sale, whether or not you should negotiate with your lender to writeoff principal, spread out or suspend missed payments, extend the term of the loan, suspend principal payments, refinance the loan, etc., whether or not you should pay off credit cards and other unsecured debt with real estate debt, whether or not bankruptcy is your best option, whether or not Chapter 7 bankruptcy or Chapter 13 bankruptcy is your best option, whether or not you should file bankruptcy immediately or let foreclosure take its course, and so on.