Kind of a legal ? Please Help!

[disneygirlatheart]

I hope someone can help me out with this answer. A 60 year old relative is going through a major life change right now, and my name is included. She is going through a divorce and bankruptcy. My name is on her house as a co-owner. My dh and I have excellent credit. Will her filing bankruptcy have any affect on us? Will it show up on our credit report or will we be liable for any bills etc. The house I belive was paid for except for a 10,000 loan to the electric company for her unit. She also stuck us with other stuff, but we will not get into that one right now. She is filing tommorrow and has no intentions of asking the lawyer about this for us. I just know someone can help me out on this.

 

[C.Ann]

I'm not a lawyer, but if your name is on the house and she includes the house in the bankruptcy, I'm pretty sure you will be involved as well.. Sorry..

What state is this in? Different laws apply in different states and someone from your own state may have better information..

Good luck..

 

[manning]

I'm no expert, but I wouldn't keep silent. Get a lawyer and object. Do something, if you can, to get your name off the title.

 

[disneygirlatheart]

I am in Tn.

 

[Connieh]

It will most likely hurt your credit if your name is on the loan.

Not sure if your name just on title as owner, though.

 

[The Mystery Machine]

When is the last time you pulled your credit reports? I would start doing it reg. now.

If she is filing tomorrow, my butt would be there.

 

[disneygirlatheart]

My name is just on the house as co-owner, not as a co-signer to the loan. There is not any way I can make it today, that goes back to some of the other stuff we got stuck with.

 

[Lisa loves Pooh]

Not initially--but they can come after you for the balance and if you are not able to pay it, then you will have a problem.

This is why you don't co-sign for these things. You risked your credit to help someone out.

So I would be working out a plan of what you will do when he home is foreclosed and she is bankrupt and they begin to come after you for the balance. As long as you can meet their terms--then your credit will remain unscathed. Likely they will want the amount immediately though--you won't be able to pay it like a mortgage payment without dinging up your credit.


ETA: Didn't see the co-owner part. You can do a quit claim deed which will release your interest in it.

The only thing that would affect you are any LOANS that you co-signed that the person cannot pay.

 

[The Mystery Machine]

My name is just on the house as co-owner, not as a co-signer to the loan. There is not any way I can make it today, that goes back to some of the other stuff we got stuck with.

Have you checked your credit reports? Do that ASAP.

 

[LindaR]

Since you are a "co-owner" then you have a vested interest in the property. What do you want to do? Get rid of it or keep it? That is an important question that needs to be answered in order to proceed.

A third party (bankruptcy court) cannot take something away from YOU if you are not filing bankruptcy......but there is a complicated mess ahead if you wish to retain the property.

 

[LindaR]

And quite frankly, I do not know how you can get "stuck" with anything! You must have agreed to whatever you are "stuck" with.........therefore SHE did nothing without your consent......and you are not stuck....you may be obligated, but not stuck! See the difference? Unless someone fraudulently obtained your signature (then that is a criminal matter), you must have consented.......SHE didn't "stick" you.....YOU did!

 

[wvjules]

Are you a co-signer on the loan or is your name listed as a co-owner on the deed/title?

If you are a co-signer on the loan then you are SOL. If you are only on the deed/title and did not co-sign a loan then it shouldn't affect you at all.

Additionally, if you did co-sign the loan it will only affect your credit, not your DH's.

 

[ols386]

But if the op and the dh, BOTH try to get a loan for a house, car, or whatever, then wouldn't it affect the dh credit also, in that kind of a situation?

 

[Poohlovr]

Are you a co-signer on the loan or is your name listed as a co-owner on the deed/title?

If you are a co-signer on the loan then you are SOL. If you are only on the deed/title and did not co-sign a loan then it shouldn't affect you at all.

Additionally, if you did co-sign the loan it will only affect your credit, not your DH's.

ITA-as long as your name is not on a loan, the BK will not affect you. If you had co-signed a loan and she forfeited on that, then, yes, that would affect your credit and they would come after you for payment.

The only way this can really affect you would be a loss of the property if she gives it up in the BK.