Well boys im in deep shit
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Rusty
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Me thinking out loud again. Another question for the lawyer. If you could keep it, how long before you could sell it and keep the profit without violating the bankruptcy laws. And of course with the housing market taking a turn for the worse I would make sure I have enough equity in it that I wouldn’t get upside down in it and take a loss when you can walk away from it now. I know what your going through. I was developing a subdivision that I owned 51% of back in the early 2000s and then the market crashed. I had to give up all my ownership to the investors that had deep enough pockets to weather the storm. I went from being a millionaire on paper to nothing fast and had to start over. Plus side was I went from having no personal time for myself or family to having lots of time. And time is not something we can buy more of. So after a while I started to become thankful for what had happened.
Very sorry to hear this. I am a bankruptcy lawyer, but Chapter 11, not Chapter 12. Be sure to find someone who specializes in Chapter 12. The quality of your bankruptcy lawyer makes all the difference in the world.
That’s the circumstance that Chapter 11 is designed to avoid, viz., a temporary cash flow shortage causing the loss of a valuable business. Chapter 11 preserves it, but frequently, only with a change of ownership. Sometimes not.
I have been in energy cases where the gas curves showed shareholders to be in the money one month, then way out of the money a couple months later, then back in the money a few months after that. Liquidity allows one to ride out those kinds of fluctuation, but bankruptcy does as well, but not for very long. The real question is whether there is demand for the business. If not, and if current shareholders are competent managers doing the right thing and pursuing the right business plan, sometimes lenders will agree to allow current shareholders to “buy back” their interests over time. That is, sometimes the bank doesn’t want to own the collateral, so if they can’t sell it to a third party for a decent price, they’ll let you continue to run the show and buy back your equity over time.
I have been in energy cases where the gas curves showed shareholders to be in the money one month, then way out of the money a couple months later, then back in the money a few months after that. Liquidity allows one to ride out those kinds of fluctuation, but bankruptcy does as well, but not for very long. The real question is whether there is demand for the business. If not, and if current shareholders are competent managers doing the right thing and pursuing the right business plan, sometimes lenders will agree to allow current shareholders to “buy back” their interests over time. That is, sometimes the bank doesn’t want to own the collateral, so if they can’t sell it to a third party for a decent price, they’ll let you continue to run the show and buy back your equity over time.
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