QUESTION
my husband is about to file bankruptcy due to the closing of our family business. we have 2 loans at the same bank, the business and our home, and
Asked on Nov 27th, 2011 on Bankruptcy - Georgia
More details to this question:
they are cross collateralized. we owe 60,000 on our home but the fair market value is 87500, can we sell our home, prior to the bankruptcy, for what we owe on it or do we have to sell it for the fair market value? the bank has already told us that anything we make on the sale of the the house must go towards the business loan, which is fine, we just have someone interested in buying our home and would like to sell it to them rather than lose it in the bankruptcy.
1 ANSWER
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Rogers Law Offices
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The sale of the home could possibly be a preference if it is sold to pay the debt of another entity prior to your personal bankruptcy. A preference is a transfer to a creditor within 90 days prior to bankruptcy which allows that creditor to receive more than other creditors would receive. More information would be need to evaluate this issue.
Beth E. Rogers
770-685-6320
Answered on Dec 06th, 2011 at 12:26 PM