What can creditors take when selling your home?

[DarylF08]

What is the name of your state? Missouri
My mother-in-law has paid all medical bills from my father-in-law's stroke. (No Insurance)
Total - 35,000, with there credit card. He is on disabilty and her income is around 15,000.
They talked with a lawer, He said chapter 11 is what he can do for them, but the payment was more than she could aford. They want to move closer to us but cannot do that if the creditor take the money from the house.
--- has there been a judgment against you? NO Are your wages being garnished? NO What kind of debts are they? Credit Card How old are they? about 4to 5 years

She has been trying to pay what she can, but it is not enough. She wants to find a mobil home closer to us because of their age and health and pay the rest to the creditors.
But I don't know if they have the right to all if she sells.

Thank You

 

[TigerD]

If they don't already have a judgment at the time your mother-in-law sells the house, they can't take the money from the sale.

DC

 

[DarylF08]

If there is a judgement, Are they entitled to it all, or just a %

Thanks Again

 

[racer72]

If there is a judgement, Are they entitled to it all, or just a %

Thanks Again

All. Also, your parents would not file a chapter 11 bankruptcy, it would be a chapter 13. I would suggest your parent talk to a different attorney and see about a chapter 7 bankruptcy.

 

[DarylF08]

I'm sorry, it was chater 13, not 11.
They tried for chapter 7, but the lawyer said they did not qualify.
I do not know why they wouldn't ?
The lawyer talked so fast, my mother-n-law didn't understand him
and was so overwhelmed, she didn't ask ?. The lawyer would not
return my phone calls.
Any other suggestions would be greatly appreciated.
Thank You
Daryl

 

[racer72]

The only reason an attorney would not suggest a chapter 7 would be if there was too much equity in the home. If that is the case your in-laws have a couple of options. The best would be to sell the home and take what they get to move someplace else. Less desirable options would include a reverse equity mortgage or get a loan to reduce the amount of equity in the home.

The lawyer would not
return my phone calls.

Lawyers get paid for their time, you are not a client, the lawyer has no obligation to answer any of your questions. I would suggest your MIL and you talk to a different attorney, many will give a free or low cost consultation. Before seeing the attorney, write down any and all questions you both may have.

 

[DarylF08]

As far as the lawyer, I realise he gets paid for his time and does not have to talk to me.
Its just frustrating, My inlaws are good people with perfect credit all their lives. Now, they don't know which way to turn for help, and on a very limited income now.

They do have about 30xxx in equity in their house, so that is why chapter 7 wouldn't work.
So, as soon as they sell, the creditors will take what they are owed, which leaves them with nothing to move on. She wants to let the bank take over the house and she just takes what she can and leave it all. I don't have a good answer for her to keep her there to get her situation fixed.
Don't know what else to do ?