Is It Possible to Avoid Bankruptcy and Prevent Our Creditors From Attaching Judgment Liens On Our Properties? – David

 

Jan. 19, 2009

David wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

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“Dear Steve,

I’m a real estate investor and my wife is a Realtor.

We have used my wife’s credit to accumulate debt of $180K in unsecured personally guaranteed business LOC and credit cards in one corporation and $100K in of the same in a limited liability corporation. I filed personal bankruptcy 4 years ago and thus the reason we are using my wife’s credit.

We’ve not been able to produce adequate income with these companies to cover the debt since early last year and have now maxed out our limits with no means of repayment. We have some equity ($20K) in our personal residence (jointly owned), a rental home which my wife’s mother lives in has $40K equity, and another rental home owned by one of our corp. has $25K equity. Both of our autos are paid for but need replacing.

We are focusing on try find real estate deals to cover our living expenses of $3K per month. The payments for the accumulated business debt is $7.5K. With the real estate market in flux right now we are also looking at trying to find jobs, but so far it’s been difficult to find anything. I believe would qualify for Chapter 7 Bankruptcy but don’t want to liquidate the home my wife owns where her mother is living. We have just started to default on the business credit cards and lines of credit.

Is it possible to avoid bankruptcy and prevent our creditors from attaching judgment liens on our properties? We’re hoping to re-establish some income in the future to be able to pay a portion of our debts.

David”

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Steve’s Answer:

 

Dear David,

Recently I wrote an article about a service called AssetGuard that might be what you are looking for.

While a service like AssetGuard might protect your property from being attached, it does not deal with the underlying issue that you are not able to meet your financial obligations. Nor will this approach prevent your need to go bankrupt, if that is what is needed.

However, it sounds like you are trying to address that issue by looking for a job. Good luck.

Steve

Source: Is It Possible to Avoid Bankruptcy and Prevent Our Creditors From Attaching Judgment Liens On Our Properties? – David

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Tags: asset guard, assets, judgment liens, real estate investor