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Man uses bankruptcy to get out of a foreclosure judgment

For many Chattanooga residents, the idea of being a part of building a 575-unit condo, would likely be a dream. However, for a group of partners, it turned out to be a nightmare that, for at least one, resulted in the need for a personal bankruptcy.

The project began in February 2007 for one Tennessee resident who happens to be an attorney. He, along with the other partners, borrowed $17.5 million to build the 575-unit condo project, but, like so many others, suffered a setback when the housing market crashed. The partners were unable to repay the loan and suffered a $9.8 million foreclosure judgment back in 2010. The man filed for bankruptcy and now, 3 years later, is free of that judgment as well as over $1 million from Wells Fargo and all other debts. He was able to become debt free while making 6 figures in 2011 and 2012.

For many people, unexpected life changes and the struggling economy often result in significant financial challenges. For some people, that may be credit card debt and other unpaid bills that could cause a bank to threaten foreclosure or repossession. For those people, the answer may be filing for bankruptcy. A personal bankruptcy can stop repossession, stop foreclosure and allow people to eliminate debt. For some, that debt relief may come in months, for others, it may come in years, but still, after some time, by filing for bankruptcy, many people facing difficult financial situations can become debt free. It is often best to review whether a Chapter 7 bankruptcy or Chapter 13 bankruptcy is the right way to go, as both have costs and benefits associated.

Dealing with financial difficulties should not be done alone. As long as a struggling person can find the right person to work with, it can be made much easier.

Source: Inside Real Estate, "Bankruptcy gets attorney out from under of Tennessee foreclosure," Michael Braga, Sept. 26, 2013

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