Fair Market Value of House

[DebtStinks]

@sccredit I know it's water under the bridge now, but I'm curious. Of course, don't feel obligated to answer. You had 250k in equity, knew your exemption was only 100k leaving 150k that you're presumably going to forfeit. Did you have quite a bit more debt than that? Business go south?

[sccredit]

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@DebtStinks wrote:

@sccredit I know it's water under the bridge now, but I'm curious. Of course, don't feel obligated to answer. You had 250k in equity, knew your exemption was only 100k leaving 150k that you're presumably going to forfeit. Did you have quite a bit more debt than that? Business go south?

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It's a very long story but the short version is a partnership that went very VERY south, debt well into the six figures and lawsuits totalling high seven figures from personal guarantees. Basically one partner ripped the bank off for about $4mm but I was also PG'd on it. BK was 99.996% business related debt. We tried to use the appraisal to buy back the house from the estate but they thought it was worth way more than it actually was. By the time they figured it out it was too late and they wouldn't even consider it.

[DebtStinks]

Thanks for answering my very nosey question. I'm sorry for the misfortune with your business partner.

Best of luck going forward!

[sccredit]

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@DebtStinks wrote:

Thanks for answering my very nosey question. I'm sorry for the misfortune with your business partner.

Best of luck going forward!

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No worries. I have told the story to many, many people as a cautionary tale of business partnerships. It's also a testament of how our fortunes can change very quickly. Luckily I was able to move directly into consulting for other businesses so income stayed pretty close to what I was making before and the financial rebuild was pretty easy. Even with the entire mess I was left with I am more fortunate than many others.