My husband started a company and was lent the start-up monies from my mother-in-law's line of equity from her home. The company has since closed and we have struggled to make her payments for the past 6 years with the balance not going down at all (interest only loan), We are currently filing bankruptcy and are wondering if we include this debt in the bankruptcy would she be left with the burden of this debt? We have made all payments, and claimed on our taxes for the past 6 years. However, it is in her name as it is own her houses line of equity. We are paying big $$$$ and it is killing us! Even with the bankrupty, we will have bills like rent, utilities.... this large payment is like having 2 morgages! Any suggestions?
You can list the debt you owe to your mother-in-law in your bankruptcy. However, this will only discharge your legal obligation to her. It will not discharge her debt to the bank or prevent the foreclosure of her home.
You can reach Harkess & Salter LLC at (303) 531-5380 or info@Harkess-Salter.com. Stephen Harkess is an attorney licensed in the state and federal courts of Colorado. This answer is for general information only and does not create an attorney client relationship between Stephen Harkess or Harkess & Salter LLC and any person. You should schedule a consultation with an attorney to discuss the specifics of your legal issues.
Chapter 7 Bankruptcy Attorney
Bankruptcy law requires you to list all of your debts. The fact that there may be a repercussion to someone else as a result is immaterial to you obeying the law.
Get yourselves the best bankruptcy attorney you can find and follow his/her advice!
Hope this perspective helps!
Divorce / Separation Lawyer
The failure to list every debt, every asset and every transaction is a felony that can land you in federal prison and result in denial of your discharge.
Get a good bankruptcy lawyer (feel free to call me) to determine how to best deal with the debt.
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