If you default on your payments, then the creditor can try to garnish wages or put a judgment lien on your property. You don't have any wages, so they will likely try to get a lien on your portion of the property. This is a type of judgment that can be discharged in a bankruptcy, so it would be wise for you to speak with a bankruptcy attorney to see what your best option will be in the long run. Most lawyers offer free consultations, so you will not be out any money if you do not decide to file a bankruptcy.
This is not legal advice and this does not establish an attorney-client relationship.
In Kentucky you have two (2) homestead exemptions. One for taxation (unfortunately you are still 64 so you may not qualify as its applicable to 65 and up) and the other is against creditors.
If you and the other co-tenant are married then the exemption from creditors doubles to $10,000.00. In addition, if you file for bankruptcy in KY you may be entitled to the federal homestead exemption which is more generous.
The bad news is, any equity above and beyond any mortgage lien plus your exemption in the property is probably up for grabs and your half may be sold to satisfy the judgment.
Click on "Find a Lawyer" above and locate an attorney who handles bankruptcy in your area. If you are unemployed and a joint tenant, if there is no current lien on the property or if there is a lien but the property is underwater with a mortgage, then its possible to discharge the debt entirely.
You may also have another option, a Ch. 13. But being unemployed means you probably could not fund a CH. 13 plan.
Speak to a lawyer about this. I will change the category to Bankruptcy/Debt because most bankruptcy lawyers also know how to avoid bankruptcy and assert all of your exemptions as well.
This is a public forum. Any questions or answers published here should not be construed as the giving or receiving of legal advice or the formation of any attorney-client relationship. You should consult with a competent attorney in the jurisdiction where your legal issues are pending and get good, solid legal advice. This being a public forum, those answers you do read are merely given for informational purposes only.
My colleague is correct that a default in the repayment of the debt can lead to a lawsuit being filed against you and if a judgment is entered that could result in a lien being placed on the property. All bad stuff. Therefore, the following idea: Is there a possibility of contacting the creditor and entering into a new payoff agreement with them. You could consider filing for bankruptcy, but that is a drastic step. So before considering that, you should try everything else. You should also consider speaking with local attorney who can assist you in outlining your options and methods of possibly solving this matter. Good luck.
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