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bankruptcy and friend loan


elika
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hi.i own about 50.000$ in credit cars and old credit card judgments in nj .I am planning to declare bankruptcy next summer. Now i find a house in pa and i like to buy it. It cost 30000$.my friend going to give me the money to buy it cash and he is going to hold the morgage.if i declare bankruptcy can i loose the house or they have to pay my friend first; thanks

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If your friend files the mortgage paperwork properly, they the loan will be secured by the home and secured loans have a higher priority in BK.

You have to declare the loan in your filing but you can reaffirm it with a reaffirmation agreement between you and your friend. However, there will be some court guidance on that.

Another option could be to declare BK now, take the 3 months to get through it, then buy the home if it is still available. That will be quite a bit cleaner.

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