Legal Question in Real Estate Law in Ohio

Bankruptcy -Investment properties
My business partner and I have four residential investment properties in an LLC. Three of these homes have mortgages in his name, one has the mortgage in my name. All four are deeded to the LLC. My partner called the other day just to inform me that he was claiming chapter 7 bankruptcy and he was losing the three investment properties. Can I do anything with these three homes? What course of action can I take to stop the bank from taking these three homes? These homes have families in them, on leases paying on time every month and they are cash flowing. Do I have any rights as part owner of the LLC? I should mention that as of February 1, 2008 he stopped paying the mortgages on these homes and instead went out and spent the rent money. He told me about three days ago of his bankruptcy filing, and has gone through about $4,000.00 in rent money that was meant for those home mortgages. When asked,he says he was told by his bankruptcy lawyer to not pay the mortgages because he is going to lose the houses anyway. Any help would be much appreciated.

Asked on 3/17/08, 9:15 pm

Robert Rosplock Rosplock & Perez

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Re: Bankruptcy -Investment properties

You have raise more questions than can be answered from the facts you have provided.

There are plenty of good lawyers in the Willoughby area. You need to call one right now to determine, among other things:

1. Did your partner unlawfully use LLC funds for himself?

2. Were the property transfers to the LLC in violation of the mortgage restrictions?

Documents need to be examined to make thers determinations, and it needs to be done NOW before you lose all these properties.

Answered on 3/18/08, 10:23 am

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