- posted: Nov. 06, 2013
The Emerald Forest Products sawmill on W. Main Street in Emmett, ID filed for bankruptcy and faces a trustee foreclosure sale. The business, which opened in 2010, struggled to produce boards with its used equipment and now owes Northwest Bank almost $2 million. The bankruptcy is a blow to Dick Vinson, the timber industry entrepreneur who invested $7 million into the effort, as well as County officials who would like to see the sawmill succeed as it provides many local jobs.
Foreclosure in the context of bankruptcy proceedings
When an individual or company is in financial distress, with bills mounting and income dwindling. filing for bankruptcy protection may be the best or only option. There are still many considerations that have to be made in the context of a bankruptcy filing, as there are different forms of bankruptcies, not all debts are covered, and property will be subject to foreclosure if not exempted. In a Chapter 7 bankruptcy proceeding, most of your secured and unsecured debt may be discharged, but your property will be liquidated and sold unless it is exempt, such as:
- Your home and residence up to $100,000 of equity
- Your car up to $7,000 of equity
- Certain personal property
- Your work equipment
- Your pension
Any property that is not exempt will be subject to a foreclosure sale.
The automatic stay in bankruptcy
When a bankruptcy petition is filed in Idaho, there is an immediate automatic stay of all collection attempts, including bills, collection calls, lawsuits and foreclosure proceedings. This is a powerful tool provided by law in that it allows you time to try and avoid foreclosure by:
- Raising the funds necessary to pay the mortgage
- Working out a mortgage modification agreement with the bank
- Finding a buyer for the property
Businesses and individuals, debtors and creditors alike have access to one of Idaho’s leading bankruptcy law firms with Foley Freeman. Our firm has been helping clients find solutions through the bankruptcy process for more than 25 years.