I have a 70 yr old mother-in law who wants to file for bankruptcuy?

by **trucker** » Mon Nov 21, 2011 5:03 pm

because her oldest son has put her in so much debt.we can't afford to help her but we do try as much as we can. she has lost her husband due to cancer and only has about $700.00 coming to her every month from disablity.but the kicker is she signed for us to get our home and it's still in her name we have about 10 yrs left on this home and she want's to file for bankruptcy. will they take our home from us ? we stay in north carolina, so i am trying to figure out ways that will help .is there anyone out there that knows anything about bankruptcy. i hate for her to lose what she has but i also don't want to lose what money we have put in our home either. help i need advise

by **chen12** » Mon Nov 21, 2011 5:10 pm

have her sell the house to you before she fills out the bankrupty

by **favian** » Mon Nov 21, 2011 5:20 pm

Get a quit claim deed from her on your house then record it with the county recorder of deeds. You should do this before she files bankruptcy.

by **dallen47** » Mon Nov 21, 2011 5:25 pm

She can quick deed the house to you, or sell it to you...then file

by **delton** » Mon Nov 21, 2011 5:34 pm

If hers is the only name on the mortgage, she can try to reaffirm the debt and not include it in the bankruptcy. Keep in mind that the ultimate decision on reaffirmation will be up to the bankruptcy court and the lender, so it's not a guarantee that she'll be able to reaffirm just because she requests it. Or, since she knows she's filing bankruptcy, she could "sell" the home to you for the mortgage balance and you could finance it in your name to keep it. If she includes the mortgage debt in her bankruptcy filing and is the sole mortgage holder then, yes, the mortgage company will assume ownership of the home and they'll auction it to the highest bidder. This will mean you'll have to leave it. Another option would be to sell the home before she files bankruptcy, then use any equity in the home for a down payment on another one in your name. If she is a co-signer on the loan, then you'll probably be okay. There may be some paperwork involved, but you'll get to keep the home... especially if you've remained in good standing with the mortgage company.

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