Texas
I have a pending judgement to be filed against me personally. I own 41 rental properties in Texas in two different counties. I am a sole properietor and operate the houses all under me as a sole prop. The judgement is coming from a failed business where I served as a guarantor. The judgement will be in the amount of approx $130,000. While there is an opportunity to counter sue, I do not have the funds to hire an attorney to defend the case. I was told I would have to pay $15K up front for legal fees.
The property I have is divded amonth three lenders. Two of the lenders' packages are fully levered, indicating, I really no longer have equity in the properties (it was used in the failed business). The third package has equity, but not much, maybe $40,000.
1) Assuming the credit is succcefful in obtaiing the judgement, how much equity has to be available before its worth their while or the court would allow them to follow up with the forced foreclosure?
2) Are there any asset protection steps I can take?
3) If the creditor is able to force foreclosure, I will be forced into bankruptch (ch 7). I will be left with no income. Would the bankrupcty court allow you to reaffirm property for income purposes without the prospect of other income. (ie I have been self employed in this business for over 33 years, and am 56 years old)
I have a pending judgement to be filed against me personally. I own 41 rental properties in Texas in two different counties. I am a sole properietor and operate the houses all under me as a sole prop. The judgement is coming from a failed business where I served as a guarantor. The judgement will be in the amount of approx $130,000. While there is an opportunity to counter sue, I do not have the funds to hire an attorney to defend the case. I was told I would have to pay $15K up front for legal fees.
The property I have is divded amonth three lenders. Two of the lenders' packages are fully levered, indicating, I really no longer have equity in the properties (it was used in the failed business). The third package has equity, but not much, maybe $40,000.
1) Assuming the credit is succcefful in obtaiing the judgement, how much equity has to be available before its worth their while or the court would allow them to follow up with the forced foreclosure?
2) Are there any asset protection steps I can take?
3) If the creditor is able to force foreclosure, I will be forced into bankruptch (ch 7). I will be left with no income. Would the bankrupcty court allow you to reaffirm property for income purposes without the prospect of other income. (ie I have been self employed in this business for over 33 years, and am 56 years old)