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Author Topic: Bankruptcy  (Read 826 times)

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Offline nightrider

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Bankruptcy
« on: August 04, 2016, 07:45:11 PM »
Anyone file for bankruptcy before, what is the process and what kind of situation you need to be in to even be considered justified? I have an idiot brother who thinks it's a joke or piece of cake to ditch his house which worth less than what he got it for. The catch is, I'm also a co owner. It's just going to be my arse on the line I guess, if he chooses to go through with it. Will this hurt me financially if he does go through with it? I'm sure a great deal of paper work will ensue and the changes of hand will likely involve money.



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Offline Evil_K_Man

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Re: Bankruptcy
« Reply #1 on: August 11, 2016, 11:11:42 AM »
Why don't your brother foreclose on the house before filing bankruptcy.  The two are mutually exclusive.  Also it might be enough for the bank to write off the loan and repossess the house for auction or short sale.  They can possibly come for you on the difference between loan and sales but I think it varies by state.  Like in California, it is a non-recourse state so once the house is sold the lender can't come after you or your brother for the difference if the sales price is lower than the debt owed.  However if you live in a recourse state then the banks can come after you, but I think they have to go to court for that.

At any rate, I'm assuming you are not only the co-owner on the house but also the co-owner of the mortgage.  If so, my guess would be that it would hurt your credit score. I mean you both essentially own the loan and failure to pay = bad ratings and it will probably be reported on your credit score if you foreclose.

If you are looking to remove your brother from the deed and transfer to mortgage under you, I think you can do that.  you probably need to requalify for the loan and refinance.

Good luck.



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Offline Hung_Low

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Re: Bankruptcy
« Reply #2 on: August 11, 2016, 07:26:49 PM »
Anyone file for bankruptcy before, what is the process and what kind of situation you need to be in to even be considered justified? I have an idiot brother who thinks it's a joke or piece of cake to ditch his house which worth less than what he got it for. The catch is, I'm also a co owner. It's just going to be my arse on the line I guess, if he chooses to go through with it. Will this hurt me financially if he does go through with it? I'm sure a great deal of paper work will ensue and the changes of hand will likely involve money.

I highly do not recommend bankruptcy... why not just short sale the house? It is much better for you and your brother to short sale the house rather then go into bankruptcy or foreclosure.


« Last Edit: August 11, 2016, 07:29:16 PM by Hung_Low »

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Offline YAX

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Re: Bankruptcy
« Reply #3 on: September 08, 2016, 11:01:01 PM »
If the home is upside down, definitely talk to the bank.  They'll find a solution that helps them and helps you too.  But if you are thinking about bankruptcy, you'll need money for a lawyer.  Probably around $1,200-$2,000 for all legal fees.  Maybe cheaper if you're in a small town or there's a lot of lawyers around. Also, bad credit for 7 years and nowadays companies will look at your credit records before hiring you too.



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Offline nightrider

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Re: Bankruptcy
« Reply #4 on: September 09, 2016, 08:50:55 PM »
I highly do not recommend bankruptcy... why not just short sale the house? It is much better for you and your brother to short sale the house rather then go into bankruptcy or foreclosure.

I really don't have a say. Long story short, I'm a hostage co signer. We got the house back in the days where the housing market peaked. At the time, I was still in adult school, no job, no income what so ever. But to qualify, I was listed under the loan and had to signed it too. The bank just steam rolled the paper work and approved, because they now got themselves a hostage. So fast forward now,  he thinks bankruptcy is the best coarse of action. I'm furious that he would cooked up such ideas. Short selling - logic screw the bank, they got bail out why not me, bad credit whether bankruptcy or short sale(that's his thinking)...

Yax,

Thanks for the informative cost figures of legal fees. General understanding is whether it's short sale or bankruptcy, your credit is still screwed either way right? And isn't it illegal for companies to look at credit scores when considering highers? Really has nothing to do with the job requirement criteria.



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Offline Believe_N_Me

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Re: Bankruptcy
« Reply #5 on: November 29, 2016, 03:32:22 AM »



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