Legal Question in Bankruptcy in Illinois

I am losing a multi family property in a foreclosure. Everyone has told me they will be seeking a deficiency for the difference. I have a 2nd property that I just inherited from my parents that is free and clear of any liens. Am I able to file a chapter 7 to get the creditor off my back? If I file a chapter 7, should I sign the deed of my property that is free an clear of liens to a family member?


Asked on 8/18/09, 11:54 pm

1 Answer from Attorneys
Adam S. Tracy Securities Compliance Group Ltd

Thank you for your question. Chapter 7 may not be your best option. You will certainly lose the property you received from your parents in that bankruptcy. You cannot simply transfer it to someone else on the eve of the bankruptcy either. That transfer will be avoided and the property then liquidated.

Is the multi-family owned by a corporation? You could always file a Chapter 11 bankruptcy for that corp and restructure the debt that way.

Alternately, if you own the multi-family direct, you could file a Chapter 13 and make payments on the deficiency. This would allow you to keep both properties.

Feel free to contact me for a further (free) consultation: [email protected]

Thanks,

Adam S. Tracy

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Answered on 8/25/09, 8:59 am


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