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Filing Chpt 7

Posted on: 08th Dec, 2008 12:57 pm
I am on the deed to a house my boyfriend owns and if something should happen to him. I pay him monthly rent. I am looking to file chapter 7. Is this a problem> If so, what do I need to do? He has a 1st and a home equity line on it already. So like 80% with both loans.
Hi Sue!

Welcome to forums!

If you do not include the property (the house that your boyfriend owns) in bankruptcy, then this property will not be affected. It is up to you whether you will include the property in bankruptcy or not.

I don't think this property will be a problem for you if you are filing a bankruptcy. But I would like to mention that there are various ways to avoid bankruptcy. If you mention your current situation, may be the experts in this community will help you in resolving it and avoiding a bankruptcy.

To know more about avoiding a bankruptcy, you can check out the following link:
http://www.mortgagefit.com/bankruptcy/avoid-bankruptcy.html

Feel free to ask if you have further queries.

Sussane
Posted on: 08th Dec, 2008 08:52 pm
Yes, I could avoid bankruptcy if 56,000 people each sent me a dollar.
Posted on: 09th Dec, 2008 07:54 am
hi sue,

i can understand that you must be facing a lot of issues and thus decided on filing a chapter 7. but i don't think in any case chapter 7 will be a good option. apart from destroying your credit, you will also have to give away your property. in my opinion, check out if you can qualify for a chapter 13 bankruptcy. this will at least help you to save your property. the lender will give you a new payment plan through which you will also be able to payback the mortgage debts within 3-5 years. to know more about chapter 13, check out the following link:
http://www.mortgagefit.com/bankruptcy/chapter13.html

thanks,

jerry
Posted on: 11th Dec, 2008 02:42 am
Sue: The post above is incorrect, and may get you in trouble. It is NOT up to you whether or not to include your interest in this real estate in a bankruptcy. You must sign a statement saying that you have included all of your assets in the petition. NO EXCEPTIONS. That's number one.

Number two: It depends on a lot of things, but basically if your boyfriend is not ill, and is expected to live a while, in other words you are not going to acquire his interest in the next 6 to 12 months, then a 1/2 interest in the property, subject to mortgages and a homestead exemption allowable under your state's exemption laws, is all that will pass to the Bankruptcy Estate. If this is the case, most likely the Trustee in a Chapter 7 will "abandon" his interest in the real estate, and your interest will survive the bankruptcy.

ALSO, a Chapter 13 destroys your credit just like Chapter 7. Both stay on your credit for 10 Years. Many times you can re-establish your credit more quickly after filing a Chapter 7.

This is of course general information, but unless there is many thousands of dollars woth of equity, and your boyfriend is going to die soon, you shouldn't worry. ASLO, your Bankruptcy attorney will know exactly what to do, and can give you specific advice.
Posted on: 11th Dec, 2008 05:35 am
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