Sebastian, FL asked in Bankruptcy for Florida

Q: Instead of Bankruptcy can I sell a Vacant lot I own and negotiate with my Creditors?

I am looking for an alternative to Bankruptcy. Chapter 13 doesn't work for me it seems to expensive. Chapter 7 seems like my only way. I do have a Bankruptcy Lawyer but looking for a second opinion. I own a Condo and a vacant lot. I don't have any other assets. Since Covid having problems finding work in the area I live. My idea is to sell this vacant lot which was basically worthless a year ago. Now selling at about 20000.

And negotiate myself with the Creditors. Many have sent letters in the past settling for less than half the amount owed. I am being sued by one Creditor now. But they cant seem to find me to serve the papers. They do have my correct address not trying to hide from them. Does this seem like a good idea? Or am I taking on too much? My goal was to have some money left over after negotiating these debts. Since I am basically broke and don't even have a car. And really need to move to a larger metro area where I can find work.

Related Topics:
1 Lawyer Answer
Stuart A. Young
Stuart A. Young
  • Bankruptcy Lawyer
  • West Palm Beach, FL
  • Licensed in Florida

A: Debt settlement may be OK but do not forget that you will get a 1099 tax form from each creditor that you settle with. Any reduction in debt or debt forgiveness will be treated as a "taxable event" and you will have to pay income tax next year on every penny that you save. In bankruptcy, no income tax is assessed. you tell me which sounds better to you.

Hire a good attorney and make your decision with knowledge not by listening to ads on tv or radio. If funds are limited then consider a Ch 13 with a small down payment.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.