werking4sense
Member
What is the name of your state (only U.S. law)? Georgia
My brother, my sister and I inherited some land and a house when my mother passed. My brother was the executor and cleaned out my Mom’s bank account that was to be used for maintenance on the house for the next 10 years. He claimed he needed the money to retain a lawyer because he was going through a divorce and custody battle.
Although he stole from us, he came to us crying months later asking if he could use the house as collateral for a mortgage so he could pay off his credit card debts that he was responsible for in the divorce. Against my wishes, my sister believed in him and we allowed him to take a mortgage out on this house. We put the house and our land in an LLC and he had to sign over his inheritance to us until that mortgage is paid off. If he fails to make a payment, my sister and I would automatically take ownership of his part of the inheritance. That was 2 years ago.
Recently, he made the comment about filing for bankruptcy. He seems to think since the land and house is in an LLC, he is safe from losing those. I don’t know anything about bankruptcy and seem to think if there is such a loophole, everyone would be forming LLCs to protect their assets. I feel like if he filed bankruptcy, he could potentially screw us over. Can his creditors or the court take possession of his part of the assets to pay down his debt? Please advise and yes, I know I was an idiot for allowing my brother to take a mortgage out on a free and clear house after he stole from us but sometimes we do stupid things for loved ones.
My brother, my sister and I inherited some land and a house when my mother passed. My brother was the executor and cleaned out my Mom’s bank account that was to be used for maintenance on the house for the next 10 years. He claimed he needed the money to retain a lawyer because he was going through a divorce and custody battle.
Although he stole from us, he came to us crying months later asking if he could use the house as collateral for a mortgage so he could pay off his credit card debts that he was responsible for in the divorce. Against my wishes, my sister believed in him and we allowed him to take a mortgage out on this house. We put the house and our land in an LLC and he had to sign over his inheritance to us until that mortgage is paid off. If he fails to make a payment, my sister and I would automatically take ownership of his part of the inheritance. That was 2 years ago.
Recently, he made the comment about filing for bankruptcy. He seems to think since the land and house is in an LLC, he is safe from losing those. I don’t know anything about bankruptcy and seem to think if there is such a loophole, everyone would be forming LLCs to protect their assets. I feel like if he filed bankruptcy, he could potentially screw us over. Can his creditors or the court take possession of his part of the assets to pay down his debt? Please advise and yes, I know I was an idiot for allowing my brother to take a mortgage out on a free and clear house after he stole from us but sometimes we do stupid things for loved ones.