Recently a company filed for Chapter 11 bankruptcy in an attempt to stop the sale of a rental cottage in Anna Maria, Florida. The company, 3610 Gulf of Mexico LLC, is owned by a real estate agent.
According to the Chapter 11 filing, the company has more debts than assets. Liabilities are listed at $1.158 million and assets are listed at $1.062 million.
In terms of assets, the one rental cottage, which already had an auction date set for late last month, is listed in the filing. It's valued at $550,000. Another rental property is also listed in the company's filing. This second cottage is valued at $550,000.
When looking at the income brought in by the cottages, according to the filing, for the two rental properties the company received $89,500 in 2010. In 2011 the same two properties brought in $98,415 in rental income. So far for 2012, $71,119 has already been earned.
In terms of income, the company rents out the Anna Maria, Florida, cottage for $1,800 a week in the summer. In the winter months, it costs $1,950 a week to stay in the rental property.
In general, there are a number of different reasons why an individual or a business may decide bankruptcy is the best option. Like in this case, it can be used to attempt to stop the sale of a home. In other cases, a person may file in order to discharge or reorganize debts. However, due to the fact that there are many different options, when it comes to filing for bankruptcy, a filer should seek out legal advice before starting the process.
Source: Herald-Tribune, "Realtor files Chapter 11 to protect Anna Maria rental," Michael Braga, July 2, 2012