The Best Thing To Do???

What is the name of your state? tennessee!!! i have actually a few questions in regard to my mother! she is 76 and living on a fixed income. she lives in a home with a 1st and 2nd mortgage with absolutely no equity! she acquired quite a bit of credit card and personal loan debt back in october of 2001 probably in the range of 22,000.00 just in cc and personal loans. they are all maxed out at the present. absolutely cannot get her out of the home but she pays one mortgage and i pay the other as my name is on both mortgages so she will be o.k. with the house. can she just take bankruptcy on the cc and personal loans that are all unsecured? even though they are not very old? and can we keep the house? she is 76 they will have to dismantle it around her!!! is bankruptcy even an option for her at this state and time?? thanks for all your opinions!!!!! o's girl

[Ladynred]

Unfortunately you can't pick and choose which debts to include in bankruptcy, you have to include them all. That's some pretty hefty debt for someone on a fixed income, so BK would relieve her of that.

However, the house loans can be reaffirmed as long as they are kept current. The homestead exemption in TN is $5000. The fact that your name is also on the mortgages could be a problem.

The exemption for personal property is $4000 (I live in TN too !).

THANKS AGAIN LADYNRED FOR THE QUICK REPLY!!!! HOW WOULD IT CAUSE TROUBLE WITH MY NAME ON THE MORTGAGES TOO? AND TOO DOES IT MATTER THAT THE DEBTS WERE ALL FAIRLY NEW I MEAN 9 OR SO MONTHS OLD? SHE NEEDS HELP AND QUICK!!! CAN SHE STOP TRYING TO PAY EVERYTHING NOW IF SAY SHE IS GOING TO FILE IN LATE JULY OR EARLY AUGUST? THANKS AGAIN O'S GIRL

[bigun]

If there is no equity, she ought to be able to file bk and reaffirm the mortgages and wipe out the unsecured debt. The problem will be, your credit report will reflect a mortgage included in bk.

Recent accumulation of that much debt will raise some eyebrows. Was it medical related? That'll be easy to explain and a trustee to understand. I'd suggest you get your Mom to a lawyer ASAP. It sounds like there are some extenuating circumstances that need to be clarified.

WELL ALO9T OF THE EXPENSES WERE FOR MEDS AND SUCH AND ALSO FOR LIVING EXPENSES. THEY KEPT SENDING HER OFFERS FOR THE CARDS AND SHE DIDN'T KNOW WHAT KIND OF TROUBLE SHE WAS HEADING FOR. SHE HAS SURVIVED BY PAYING ON ONE CARD WITH ANOTHER CASH ADVANCE. I HAD NO IDEA IT WAS THIS BAD!! WHAT WILL I NEED TO SHOW THAT SOME OF THE MONEY WAS FOR MEDS. AND LIVING EXPENSES. O'S GIRL