I am buying a townhome in PA as my primary residence. I will be making the full downpayment, all costs and will be paying all utilities/taxes/HOA going forward. My parents also live in PA but they are struggling due to poor economy. Dad has minimal work and mom is unemployed. Parents are soon getting rid of their home in a sale and may need to move into my Townhome. I will not be charging them rent as they can't afford it. The only payment I ask from them is to clean my home. What worries me is that my dad has a lot of debt and may potentially have to declare bankruptcy while living in my home. Will that affect my homeownership/finances? (I have no debt shared w/ him). Should i have him sign something (ie $0 rent tenant form?) or make it so that he can't affect my credit or get me sued?
Chapter 7 Bankruptcy Attorney
Thankfully, your assets and credit are safe! From my perspective the "worst" thing that could happen, is that a process server may drop off paperwork, should your parents be sued at any point. No legal impact for you - just perhaps a little hassle.
Lawsuit / Dispute Attorney
Generally no, but that does not mean that the situation wouldn't be confusing to any creditors. Be sure that any property you own is clearly titled to you anything of value should be identified on your homeowners policy both to cover any damages and to insulate it from any recovery debt collectors seeking your parents assets
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