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Bankruptcy the right decision now?

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Latest post Fri, Mar 24 2017 11:15 AM by ca19lawyer2. 5 replies.
  • Tue, Mar 21 2017 11:50 PM

    • peter01
      Consumer
    • Not Ranked
    • Joined on Tue, Mar 21 2017
    • Posts 2

    Bankruptcy the right decision now?

    Hi all,

    I am in a financial crisis. I have a lot of debt and very little money coming in. I think bankruptcy would be the right decision at this point. I read about it here, www.billfixer.com/credit-report/how-to-read-a-credit-report/. They are describing credit reporting agencies and the right procedure to follow. I got an idea about credit report. 

    However, I am a bit worried as I live with my parents and I don’t want their house to be affected. If I go ahead with bankruptcy, will their house be blacklisted? What are the options to avoid this? And how to improve our credit score post bankruptcy? I am looking forward to some expert suggestions on this. Please help me. Thank you. 

  • Wed, Mar 22 2017 8:24 AM In reply to

    Re: Bankruptcy the right decision now?

    I did not click on your link (I have no idea whether it is safe), so I don't know what it says. I recommend reading more than just one information source (as many as you can). Since anyone can post anything online it is risky to rely on just one not-so-well-known source.

    peter01:
    If I go ahead with bankruptcy, will their house be blacklisted?

    "Blacklisted" is not the right word, but I'll assume you meant "at risk."  The house is safe if it belongs to your parents (not you), and your parents haven't cosigned any of the loans you can't repay.  If your parents HAVE cosigned loans for you, come back on here and tell us (1) in which state your parents' home is located and (2) what, if anything, the cosigning documents they signed said about their house.

    peter01:
    And how to improve our credit score post bankruptcy?

    You started your post saying "I" this and "I" that.  Do you really mean "our," and if so, who is included in that plural?  Do your parents also need to declare bankruptcy, and if so, why?

    One last bit of information:  each state has laws that exempt certain assets of a debtor from being taken away by creditors even if the debtor does not declare bankruptcy.  If you say in which state you are now a legal resident, people here (or you, if you're so inclined) can find out about your state's exemptions.

  • Wed, Mar 22 2017 9:08 AM In reply to

    Re: Bankruptcy the right decision now?

    peter01:
    If I go ahead with bankruptcy, will their house be blacklisted?

    Blacklisted by whom?  What might it mean to "blacklist" a house?  Suffice to say that, unless you have an ownership interest in your parents' home, your bankruptcy will have no impact on the home.

     

    peter01:
    And how to improve our credit score post bankruptcy?

    Not a legal issue, and you can get tons of information about this by googling.

  • Thu, Mar 23 2017 11:57 PM In reply to

    • peter01
      Consumer
    • Not Ranked
    • Joined on Tue, Mar 21 2017
    • Posts 2

    Re: Bankruptcy the right decision now?

    Hey, thanks for your replies. Yes, I think blacklisted might not be the right word. I want to know if their house will also be at risk if I have an ownership interest in my parents’ home? May be I should go in search of more information and read more.

  • Fri, Mar 24 2017 12:09 AM In reply to

    Re: Bankruptcy the right decision now?

    Are you sure you have an ownership interest in your parents' home (if they have it in a trust which you will someday inherit, that is not an ownership interest, for example).

    If you do actually have an ownership interest in your parents' home, and have unpaid debts that you cannot pay, the home may already be at risk (depending on your state laws).

    More troublesome would be if they have, for example, cosigned large loans for you.  Your bankruptcy could discharge your responsibility for those loans (unless they are student loans) but it would not discharge their responsibility for those loans, so they would become responsible for those debts which may put their assets at risk.

    Most bankruptcy attorneys offer a free consultation.  Rather than just reading info on the Internet about bankruptcy, much of which can be outdated or inaccurate, or not apply in your state, why don't you schedule a free appointment with a bankruptcy attorney to discuss how Federal bankruptcy law and your particular state laws affect you in your particular situation?  That would be the best place to get free, accurate information about your specific questions.

  • Fri, Mar 24 2017 11:15 AM In reply to

    Re: Bankruptcy the right decision now?

    peter01:
    I want to know if their house will also be at risk if I have an ownership interest in my parents’ home?

    Why play the "if-then" game?   DO you have an ownership interest in the home?  If so, then your interest may be at risk.  However, that won't like put the house as a whole at risk.

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