I am considering filing bankruptcy. I have gone through the divorce from hell starting in 1999. I have invested heavily in real estate, rental property and land for more rentals and investments in Alaska. I have property in Minnesota given to me by my father and a timeshare in Florida. I am delinquent in paying my bills, real estate taxes, federal income taxes, credit card bills, utility bills, car payments and have been sued in court but not served yet. I have several pending foreclosures on my land and rental property and vehicles are subject to reposession. I do not have a single family residence, but live in one of my fourplexes. Financially, I have federal tax liens over $100k unfairly filed on all my property and they levied my accounts and income from the tenants under HUD Section 8 housing assistance. I have several income properties in foreclosure this month, by Countrywide with past due payments to cure about $100k. I have credit cards cancelled with balances over $130k after settling $100k of Bank of America cards for $20k over 6 months ago. I have 5 vehicle loans totalling $65k worth $40k now. Some medical and misc debts including $$7k in gas bills. My ex-wife has been ordered to sell a piece of my property that was transferred into her name in order to satisfy the divorce amount in excess of $1.5 million on property worth in excess of $3 million and I get the balance, but the property title is only in her name. I tried to sell the rental properties to pay her off to keep that piece of property. The buyers of 6 properties took early possession and vacated them to start repairs, then the secondary mortgage market collapsed and only 1 closed, resulting in vacant and damaged units, no cash flow and no money to pay the mortgages. I have been working night and day to do repairs with little money and it is a slow process. When repaired and rented, they will generate gross rental income of about twice of the expenses, but it takes money to fix them and time. I am not upside down on these and have equity over $1 million if sold after being rented and repaired, but I need to keep them as sale creates more tax debt, lost income, etc. My land is not very saleable, and valued at more than $2 million in equity. Overall debt is almost $4 million. If I file to prevent foreclosure, will the credit card debt be eliminated or reduced by a set amount or settlement %? Will the vehicles be appraised and the unsecured debt be eliminated and kept as they are all needed for the rentals. I don't have a business license nor corporation. Ihave thought about transfering title to an LLC and starting a Nevada C corp to hold the LLC for protection of the assets from lawsuits. How would bankruptcy be affected? If I list property for sale, not because of Ch. 7, but to clear debt and for repairs, do I keep that in my account for repairs and account for it?
What are my alternatives and possible outcomes for each? Please be specific and as complete in your answers as possible. Remember, this wealth all strted because I bought a 4 plex to live in and it worked great until the divorce, now going into its 10th year. Divorce decree is dated 4/2004. Thank you for all help in advance. :)