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if i file chapter 7 for my business can they take my home. its paid for but is attached to a note for the company

1 Answers. Asked on Dec 06th, 2012 on Bankruptcy - North Carolina
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Answered on Dec 08th, 2012 at 12:56 AM

When you say "attached to a note" I assume you mean that your corporation (I assume it's a corporation, although that also is not clear from your post) secured a debt using your house as collateral.   If so, then regardless of whether or not you file bankruptcy, but the creditor has a lien against the property and can execute on it in accordance with the laws of your state.  

Filing a chapter 7 for your corporation doesn't affect a security interest the creditors have, even if it is against an asset of the corporation.  But in your facts, the asset isn't even part of the corporation.  On top of that, corporations do not receive a discharge of debts in a Chapter 7 case, although that has nothing to do with the lien against your property anyway.

Mark Markus has been practicing exclusively bankruptcy law in California since 1991.  He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization,  AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.  

 

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