Posted on: 06th Dec, 2009 03:23 pm
my cousin and i are partners of a two family house. how can i protect the house from her creditors if she goes bankrupt in the future
Hi jim blanch!
Welcome to forums!
Saving the property would depend upon the type of bankruptcy she is filing. If your cousin files Chapter 13, it will help her reorganize the debts. Thus the lender would give her a payment plan to pay off the mortgage dues and you would be able to save the property.
If your cousin files Chapter 7, then it would depend upon the trustee whether or not he would sell off the property to pay off her creditors. If the property is not sold, then she can sign the debt reaffirmation agreement and save the property. However, she will have to pay her mortgage dues on time after she signs the agreement or else the lender would foreclose the property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Saving the property would depend upon the type of bankruptcy she is filing. If your cousin files Chapter 13, it will help her reorganize the debts. Thus the lender would give her a payment plan to pay off the mortgage dues and you would be able to save the property.
If your cousin files Chapter 7, then it would depend upon the trustee whether or not he would sell off the property to pay off her creditors. If the property is not sold, then she can sign the debt reaffirmation agreement and save the property. However, she will have to pay her mortgage dues on time after she signs the agreement or else the lender would foreclose the property.
Feel free to ask if you've further queries.
Sussane