Guiding elder parent through possible Chp 7
My father is 72 y/o. He has since remarried since my mother's passing 13 yrs ago. He is still working part time as is his wife. This past year, he relied on c/c's to sustain. He racked up over 40k in c/c debt. Attempted to do a home equity loan (65k) to pull himself out (home value 120k / mortgage balance = 14k). He applied this past June, 09, was "pre-approved" and began waiting for guidance to close. Unfortunately, he faced the hassle of "clearing the title" to his home since nothing was ever changed after my mother's death. This would normally not have taken as long if it was not for also dealing with my brother's death 7 years ago. My brother had been married/divorced 3 times with 6 children. Attempting to clear everyone's interest off the title became an undertaking......fortunately, ALL were on board for my dad. At the 11th hour, the lender declined his application due to title delays. It was 6 mos of waiting gone down the tubes. My father was hoping to have everything finished by now. He is now contemplating filing chapter 7. His creditors are tormenting him & he is at his wits end. Should he try to apply again once his title is "cleared"? OR go ahead and file chp 7. If he files, will he be able to keep his home & his 2 vehicles? Will he be able to do a home equity loan AFTER chp. 7 ?
This way he can keep his house and dump the unsecured debt and hopefully budget to live on the SS income.
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