My question involves bankruptcy in the state of: Fl
Someone I lent money to owes me a substantial debt via recorded judgment. But he has threatened to file for bankruptcy if I don't accept his untenable offer.
He owns, apart from his homesteaded property, 9 other investment R.E. properties in his name; has signed mortgages on these properties and his home for over 1.7 million in debt, and probably has a net worth of 800K to 2 million if the properties, other than his home, are sold.
He owes me less than half of that. There are no other judgments other than mine except a 4K tax revenue lien on her county records. The State of Florida Debtor name list does not show his name as a debtor on credit cards or other creditors, so the record looks pretty clean.
So...is it true that he cannot qualify for Chapter 13 since his secured debts are over 1 million?
If he does not qualify for Chapter 13, can he successfully go through Chapter 7? I think that, being cash poor, he can pass the means test, but I wonder if the abuse test could stop the bankruptcy.
I don't want to spend years in court fighting the bankruptcy.
At the end of the day, if he sells most, if not all of his RE investments (very little in the way of personal property), I would get fully paid and he would have money left over. That does not seem as if it fits bankruptcy parameters. Is this right?