Bankruptcy question...PLEASE HELP?!?

My father co-owns a towtruck business and the bills for the trucks and repairs far outweigh the company's income this year. My father doesn't even get a paycheck some weeks because he has to pay for all of the business's debts and payments and also his workers before he pays himself and his partner. This now causes our family's personal debts and payments to be set back as well. We're afraid we'll have to file the business for bankruptcy and we're wondering how this will affect us with our own personal finances. Could we still be able to keep our house (in Colorado)? And my new car (my father co-signed with me on it and I make the payments)? Or what about any other vehicles under his name? Could it be more certain that we'd keep our house if my parents put it under my name? (I'm 21 years old). Please, any intelligent answers will help!!

If your parents put the house in your name today, and then filed bankruptcy tomorrow or even 5 years from now, I guarantee you the trustee would intervene and try and sell the house. Especially if they just deed it to you and you don't even buy it. Which causes a multitude of other problems if they have a mortgage that's in their name because A) they will still be liable for the mortgage and B) once the mortgage company finds out, they will exercise their due on sale clause making the entire mortgage due immediately.

If your father files a bankruptcy because of the business, and I'm assuming he has a partnership when you refer to the fact he has a partner, rather than a corporation or llc, then it will impact everything that your father's name is on. When a partnership files bankruptcy, both (or all) partners must file bankruptcy (at least if none of the partners want to be stuck with the debt). But this does not only impact the business debts and assets, your father must list all of his partnership income, debts, assets as well as his personal debts and assets on the bankruptcy, so i may help he family to an extent as all the debts will be discharged.

I am not familiar with Colorado exemptions, but even if I were I could not tell you if they could keep the house because I would need to know what the value is and how much the mortgage is, but chances are if there's less than $20,000 of equity and they are current on the house, that it will be okay.

For your car, your father will no longer be liable for it, but you should be able to keep it UNLESS there is a HUGE amount of equity (which is rare with a new car to begin with), and only half of that would be subject to bankruptcy anyway, assuming both you and your dad are on the title.

In any event, if they transferred the house to you, you'd be MORE likely to lose the house than if they keep the house in their names. It will look like and smell like fraud, and it frankly IS bankruptcy fraud to do that, so just don't do it! It isn't worth it, especially if there is hardly any equity in the house.

Your parents should just consult a decent bankruptcy attorney and take his/her advice. It really shouldn't even be any of your business since none of these debts are in your name.

You'll have to talk to a lawyer as the rules in each state are different when filing bankruptcy.

I don't know hun.. You're best bet is to sit down and talk with a lawyer about everything. They can go over everything and give you the answers you need.

I wish you luck

when you file for bankrupcy they take everything into account,, the car, house, buisness everything...... you can only have a car worth so much like 5000 o near that. I filed for bankrupcy and i can only have a car valued at 6000 it depends on how much you are filing for bankrupcy. It is very involved so think about it really carefully,, do some research. good luck

The most common personal bankruptcies are either Chapter 13 (known as "reorganization") or Chapter 7 (known as "liquidation").

If you file Chapter 13, you may be able to keep your home and any stocks you have. You are expected to work off a reduced debt by paying a percentage of whatever wages you earn. Usually, a court pre-determines a specified dollar amount, based on your regular salary, or claims a percentage of whatever income you can generate after you have filed.

If you file Chapter 7, though, your properties are actually sold off to pay creditors. However, certain properties are deemed exempt and are therefore not eligible for sell-off. These exemptions, like overall bankruptcy laws, vary from state to state.

Here are a few general downsides of bankruptcy to keep in mind while you explore your options:

1. Loss of property 鈥?You will not be allowed to keep properties you are paying for unless you somehow continue to make payments.
2. Debt and your bills do not go away 鈥?You will still be responsible for paying any secured loans, like your mortgage, as well as student loans, child support and alimony.
3. Your outstanding debts still transfer to others 鈥?Any individuals who acted as cosigners for you will still owe that debt. They are not excused from these debts just because you declared bankruptcy.

more bankruptcy & personal credit info: http://credit.privacymatters.com/credit-...

avoiding bankruptcy: http://credit.privacymatters.com/credit-...


Best of luck to you, hope this helps!