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About Mark J. Markus- California Bankruptcy Attorney
Expertise
Mark J. Markus is a Los Angeles attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.


Experience
Visit http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on
  • business bankruptcy,
  • chapter 7 bankruptcy,
  • chapter 11 bankruptcy,
  • chapter 13 bankruptcy,
  • Frequently Asked Bankruptcy Questions

    Also visit our new bankruptcy blog for interesting articles and much more.



    Education/Credentials
    J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here

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    You are here:  Experts > Business > Corporate Law > Bankruptcy Law > bankrupcy

    Bankruptcy Law - bankrupcy


    Expert: Mark J. Markus- California Bankruptcy Attorney - 9/7/2009

    Question
    QUESTION: Hello

    My mother and I bought a property together a property together, we recently sold it and we are carrying a loan for around 80.000. "The people that bought the property still owe us 80.000 and they are making payments to us of around $1500 a month. The loan is due in around 4 years."
    The property is located in Washington State
    My stepfather is in the hospital and isn’t expected to live that long  

    My mother may have to go bankrupt how will that effect the 80.000?

    Thanks

    Matt


    ANSWER: The loan is an asset of your mother's bankruptcy estate.  Whether or not it can be protected depends on the exemption laws of whatever state is applicable to her case.  To see more on exemptions, please visit http://www.bklaw.com/exemptions.html.  The income from the loan must also be factored in to her budget analysis and means test analysis to determine eligibility to file.

    http://www.bklaw.com/

    ---------- FOLLOW-UP ----------

    QUESTION: what about my half of the loan?


    Answer
    That depends on what chapter of bankruptcy your mother files and, again, what exemptions are available to protect her interest in the asset.  If she files a chapter 7 case, and there is equity, the Trustee can sell the Note and pay you your half, but you might get into a battle over the amount it's being sold for, since the Trustee can sell it at a discount.  If she files a Chapter 13 case, the asset would have to be valued and she would have to pay out at least as much as the creditors would receive in a Chapter 7 case, but the Note would not have to be sold.

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