amf

bankruptcy and house

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6 months ago i buy a condo in S.C for 20000$ cash with a loan from a friend. Now I have to fill for bankruptcy in nj for credit card and medical debt. Can I loose the house to the credit card and hospital creditors or I save it with the federal Homestead exemption and keep paying my friend the payments ;it is my only house but don't live there and I like to keep it.thanks

Edited by amf

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You can exempt up to $18,450 in a chapter 7 in New Jersey on a home if you live in it. You cannot claim homestead if it is an investment property.

If the house is in you and your friend's name then you will loose your interest in it. Your friend may have to come up with half the value of the condo in order to keep it.

btw. You will get more responses if you use good grammar. Most experts here skip over posts that are written so badly that they are hard to follow. Just some advice.

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yes sorry for my grammar but my english are not very good.what if i live in the house in south carolina or if my friend put a lien on the house.Also if my debts occurred in N J can i fill for bankrupty in S.C if i live there for less than a year; thanks

Edited by amf

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How much debt are you talking about filing on?

Are you working?

There are very specific rules about how long you have to live in a state to file using the exemption for that state. Check the exemptions for SC and for NJ here LegalConsumer.com :: Free Bankruptcy Forms, Information, Means Test Calculator, 50 State Exemptions, Federal Bankruptcy Law, Bankruptcy News and then read the section for the requirement for filing after moving.

Most of what you are describing as methods/questions (liens etc) to keep the condo is considered bankruptcy fraud. You don't want to do that...it would create a major, major problem for you.

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If you have a written agreement with your friend for the loaned money then that would be included in your bankruptcy proceedings as a debt and would be discharged.

Keep in mind what Denita said about bankruptcy fraud. Don't fabricate anything now that you didn't do in the past. If you get caught you can, and likely will, go to jail. Bankruptcy is for honest people that have hit rock-bottom due to circumstance....not cheats.

I wouldn't be filing bankrupcy over a $25k personal debt to a friend and another $25k in credit cards. It's not worth it at that level. If there was another zero on that number I'd say it was beyond fixing.

I'd be delivering pizzas, cleaning bathrooms on a night shift, and just plain doing whatever I work I could get to keep myself fed and sheltered while looking for more stable work.

Credit card companies can take a hike. There is nothing they can get anyways. They can scream and call you names but that won't change things. If the wages can't be garnished because they are below State minimums then they can go pound sand until you get back on my feet.

If the person who went halvsies on the condo is a true friend they will understand this is a temporary setback and can hopefully cover things until you get back in a position to resume payments. The relationship likely will be strained (which is why you NEVER borrow from friends) but it will be worse off if the debt is discharged in bankruptcy.

Edited by Methuss

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the question is if i claim bankruptcy who is going to get the house my friend or the credit cards;if i own money to my friend and keep make payments to him for the house can i keep it or it will sold in auction so the credit cards can get payed; the house is only 20.000$.thanks

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You can save your house by filing bankruptcy.once you file bankruptcy with chapter 7 or chapter 13 you will advantage of stop foreclosure which goes in to the intimidate effect in which you can save your home.

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