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Can I legally invest in real estate under my companies name even if I'm in a Chapter 13 bankruptcy?
Anonymous5 views4 answers
I'm a real estate investor. I don't actually buy the real estate, I'm the middle person who brings the buyer and seller together. I am in a Chapter 13 and have a property that I need to close a deal on. Basically I find properties and have the seller sign that they want to sell, then I find a buyer willing to purchase the property and I make a percentage off the selling price. I do this under my company's name, but I want to know if I need to report any of this to my trustee even if it's not actually me buying the property?
Robert W GambrellChapter 13 Bankruptcy AttorneyOxford, MS ·
If the company is a corporation or LLC, the entity is shown as an asset in your schedule B under question #13 and the LLC or corp. is the purchaser and seller, then you are not required to show the purchase or sale of the asset. However, our chapter 13 trustees generally require a quarterly, semi-annual or annual report from the LLC or corp. so the trustee can determine if the debtor's income has increased, which may require a modification.
If a debtor formed a corp. or LLC after the bankruptcy was filed, our court requires the reporting of a new asset, especially one that has changed the income. If you have an attorney, speak with him/her about your situation. If not, you either need to retain counsel or should report everything that you are not sure if you should or not.
Let me give you a general answer in bankruptcy when it comes to financial disclosure. You can't disclose too much information but you can have a problem from withholding or not providing the required information. The Chapter 13 case is based on your monthly income, so if you are making more money, the trustee would generally want you to pay more, if you are not paying 100% on your unsecured claims. You must discuss this with your Chapter 13 counsel. In the event you are not represented by counsel, you should contact an experienced local bankruptcy lawyer. If the trustee finds out you have withheld information, he/she may be able to move for dismissal or take other negative action against you. This question is really do I have to let the trustee know I am making extra money, regardless of how I earn it.
Assuming it's Georgia property you have to have a broker's license to legally get paid for getting buyers and sellers together on real estate transactions.