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Will we lose our house, held in title under our LLC, if we file Chapter 7 bankruptcy?

Asked over 2 years ago - California

I am considering filing chapter 7 due to tremendous debt borne as a byproduct of our family tragedy, and successive crisis. I reside in California & have had no income for two years. We hold full ownership of an LLC, which holds title to a home. Though the business is idle and the home is in uninhabitable condition, it is technically inventory, for purposes of being flipped (as this is what the business was established for). Would our property be subject to seizure if we need to file chapter 7? Any thoughts/recommendations deeply appreciated.

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Kevin John Stewart

Reputation Level 5

Answered over 2 years ago. Bankruptcy Attorney in San Francisco, CA.

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Depending on its value and the amount of equity you have in it, you could possibly keep the house. In any case, the trustee would probably not want an uninhabitable (and therefore un-sellable) house. There are many more questions to consider, however. Each case is different. But aside from the question of keeping the house, with your stated lack of income and large debt level, you should consider Chapter 7 bankruptcy.

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