During the real estate boom PC bought condo in Aventura, FL as an investment via an
LLC. I have not had a full initial meeting yet, but my understanding at this
point is that the Condo is the only asset which the LLC owns.
PC no longer wants/can (not sure which at this point) keep paying on the
property due to the significant decrease in value. PC is considering simply
handing the “keys” back (sort to speak) to the bank but is concerned about
remaining amount which may be due on house post-foreclosure.
My understanding is that for an LLC a Ch 7 bankruptcy would not discharge a
lien on the property and should the PC allow the property to go into
foreclosure, that it would result in a lien. Only individuals get a discharge in Chapter 7. If the LLC is the borrower,
a post-foreclosure deficiency can be sought against it by judicial process
against its assets, if any; if an individual is liable for the debt as
borrower, cosigner, or guarantor, the deficiency can be sought from her, but
would be dischargeable in an invdividual bankruptcy.
