Chapter 13--flipped out in FL

[SadieOdelle]

What is the name of your state? I live in TX, but my properties are both in FL.

I bought a house in FL with a plan to flip it. A year later, I am in dire financial straits. I will likely loose 175k on the house. However, I also own an undeveloped business lot for which I stand to make $120k profit & is only my only hope to recoup part of the losses from the house. I understand if I foreclose on the house, my lender could put a lien on the lot, so foreclosure is not an option. I have a steady, good job. If I file Chapter 13, would I likely loose the profit from the lot?

 

[moburkes]

Well, yeah. But, then again, not really. The money from the sale will be used to help pay your debts. So, technically, you won't lose it, it just won't be available to you to use for other things. But, it will help you pay your debts.

 

[SadieOdelle]

I am going to be in horrible debt no matter what I do. But will Chapter 13 help reduce my losses to Countrywide? If so, then it may be worthwhile to me to file even though my credit would be shot for 10 years.

 

[moburkes]

I don't know what you mean by reduce your losses. You won't get as much money from the sale as you expect, because it will be sold NOW for whatever can be gotten. That money will go towards paying debts, though. But, if you'd like, get a free consult with a local BK attorney for better options.