Is BK possible and what might happen?

[CookieJar]

Have a Judgement against me that is well beyond my ability to pay, and it's adding close to $5.00 interest daily.Court ordered levy of bank account. <good luck with that, everything is hidden in our CookieJar!>

Have already lost our house, living in a travel trailer on family property. Husband has full time job, I am self-employed to help out. We have multiple vehicles and trailers, nothing newer than 20 years old.

Situation: Back when I had the better credit rating, I was part of the mortgage refi on a rental property that we own 50/50 with husband's family. The property has no comps and now my credit is tatters.

Question: How will my filing for BK effect this property?

 

 

Thanks in advance!

CookieJar
 

[despritfreya]

. . . I was part of the mortgage refi on a rental property that we own 50/50 with husband's family. The property has no comps. . .  How will my filing for BK effect this property?

 

Your 50% interest in the property will become an asset in the bk and must be disclosed on Schedule A.  The corresponding debt associated with the property is disclosed on Schedule D.  The co-owner(s), if they are also on the loan, are listed on Schedule H.

 

If you file a Chapter 7 the trustee will determine if there is sufficient value in the property to justify selling it. If the property cannot be partitioned, he can sell the entire property but will most likely have to split the net proceeds with the co-owner.  To avoid this he may simply offer to sell the bk estate's interest to the co-owners.  No way to really predict the outcome.  In addition, the bk estate may be entitled to 50% of the rents collected after the bk is filed, depending upon the situation. 

 

You NEED to discuss this with a local bk attny.

 

Des.