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What happens after a foreclosure sale when the home does not sell for enough money to pay off the mortgage?

When one obtains a mortgage loan the borrower (like a homeowner) gives the lender both a lien on the property and a promissory note.

Corporations (including Not-For-Profit Corporations), Partnerships, and Individuals who exceed the debts limits for a Chapter 13 are candidates for a Chapter 11.

A chapter 13 is a form of a repayment plan. Certain debts have to be paid 100%.

Banks, credit card companies, and finance companies insist that Bankruptcy is the last resource. Why?

For reorganizations there are 2 main Chapters available: Chapter 13 and Chapter 11. Only an individual may file a Chapter 13.

Not being able to pay your bills as they become due lowers your score dramatically to the lower 500s, sometimes the 400s. If it is multiplied with a lawsuit, a garnishment, repossession, multiple items with the credit bureau, your score goes down dramatically.

When it becomes apparent that the business just cannot go forward, the filing of a Chapter 7 may be the best option to orderly close the affairs of the business.

You wake up in the morning, get ready for the day, and start heading toward your car… only to find that it’s not there. You call the police, only to be told it’s been repossessed. What do you do?

An individual business can reorganize through a Chapter 13. The one limitation is that secured debts must be under $1,184,200 and unsecured debts must be under $394,725.