I'm an 18 year old college student residing in California. My father owns a dental laboratory, from which he earns a decent amount of income. However, he tried to start up another company from which he has incurred a lot of debt. He seems to feel strongly that bankruptcy is the only way out. I'm not sure he fully understands the consequences, but he doesn't take anyone else's advice into consideration.
On top of the financial troubles, my parents are also going through a divorce. They have been living separately for almost a year now, and my mom just started to get back on her feet. She is supporting all three kids (ages 16,18,20) and trying to put us all through college. I myself work 19 hours a week while going to school. My mom prepared for us in the past by setting up college funds and putting money into our savings accounts. When I was a minor, they were all set up as joint accounts with my mother. Recently however, since I'm now 18, I closed those accounts and opened new ones just with my name.
Will all our hard-earned savings be put in jeopardy if my father files for bankruptcy? I have heard that if my parents co-signed for a debt incurred, then my mother will be held responsible as well. I have also heard that my accounts will be frozen if my father files for Chapter 7, but that they will be saved if he files Chapter 13. Is my knowledge correct? My father is currently planning on filing Chapter 7 because he heard that it would be the easier route for him.
Is there anything I can do? I had worked hard to save virtually every penny possible with big dreams and intentions for college and graduate school. I don't know what to do, and I'd really appreciate any advice or more information.
Thank you very much.
On top of the financial troubles, my parents are also going through a divorce. They have been living separately for almost a year now, and my mom just started to get back on her feet. She is supporting all three kids (ages 16,18,20) and trying to put us all through college. I myself work 19 hours a week while going to school. My mom prepared for us in the past by setting up college funds and putting money into our savings accounts. When I was a minor, they were all set up as joint accounts with my mother. Recently however, since I'm now 18, I closed those accounts and opened new ones just with my name.
Will all our hard-earned savings be put in jeopardy if my father files for bankruptcy? I have heard that if my parents co-signed for a debt incurred, then my mother will be held responsible as well. I have also heard that my accounts will be frozen if my father files for Chapter 7, but that they will be saved if he files Chapter 13. Is my knowledge correct? My father is currently planning on filing Chapter 7 because he heard that it would be the easier route for him.
Is there anything I can do? I had worked hard to save virtually every penny possible with big dreams and intentions for college and graduate school. I don't know what to do, and I'd really appreciate any advice or more information.
Thank you very much.
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