Chapter 51 Reorganization - Posted by Greg

Real Estate Investing Real Estate Law
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Posted by dealmaker on February 16, 2006 at 09:07:34:

Hmmm, maybe your friend is confusing AREA 51, with the bankruptcy laws. Under the new laws there may be such a chapter but in my experience “friends”, “everyone” and “other people” are terrible sources for financial and legal advice.

IMO going BK for $30K is a TERRIBLE IDEA. Recent federal law changes make it more difficult to discharge debts throught BK, also the taxes may not be dischargeable (if they’re income taxes they certainly are not.

Since advice is never hard for the guy giving it, the following may sound a bit flip, but I’d seriously consider delivering Dominos pizzas for 8 months to get the $30K. That’s a piddling amount to go BK for, it’s about 75% of the average annual income.

dealmaker

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Chapter 51 Reorganization - Posted by Greg

Posted by Greg on February 14, 2006 at 21:15:24:

I made a few big mistakes on my first real estate transaction including having to pay 8 months rent before selling and underestimating tax liabilities. Long story, short is I owe $10,000 in taxes. I owe money that I borrowed to rehab the property. All in all I am $30,000 in debt and planned on doing a chapter 13 bankruptcy. The thing is I got some advice from a very intelligent friend and she said I should strongly consider a Chapter 51 reorganization. I know I made this short and to the point but someone please let me know about Chapter 51. I had never heard of it before. Thanks.