Lien on house
This is kinda complicated, but I'm really stressed my lawyer is not available at 6pm on a saturday so If anyone can help me stop stressing I would so appreciate it.
I filed for divorce 3 weeks ago. My husband and I own a restaurant that we are selling for a loss, the sale will be complete on Wed of this week. We are selling for $100k, we owe about $70k-80K (food taxes, equipment leasing, utilities) and we have a lien on our house for $135k from my husbands mother who gave us the money to start the business. She has more than once verbally told me she did not expect repayment since she knows the business has failed (not sure that means anything?) The house is worth $450-470k we have a $150k mortgage, we also have about 30k in credit card debit from trying to stay above water while making this business work. Neither my husband or myself have other jobs, this failing business was/is our only source of income. All mortgage,car,credit card, utilities bills are current and up to date. We have been in this house for 9 yrs and filed for homestead 2 months ago.
So my question is this.. Today I received a letter from my mother in laws lawyer demanding $135k.
Can she force me to sell my house to repay the lien? my understanding was that she would only receive payment on the lien if/when I ever sold the house? is that not correct? also would filing for bankruptcy wipe out the lien she has? would filing Bankruptcy for my business be enough or would i have to file personal bankruptcy also since the lien is on my home? I have extremely excellent credit and was hoping to avoid personal bankruptcy but I can't lose my home, I have 3 small children, and my mortgage is only 1k a month.. I will be living in my car if I lose this house, you cant get an appt for under $1700 a month around here! also will filing for bankruptcy release me from the food tax bills?
what a nightmare, if you can shed some light on this so I can sleep tonight I'll never have enough thanks for you!
I filed for divorce 3 weeks ago. My husband and I own a restaurant that we are selling for a loss, the sale will be complete on Wed of this week. We are selling for $100k, we owe about $70k-80K (food taxes, equipment leasing, utilities) and we have a lien on our house for $135k from my husbands mother who gave us the money to start the business. She has more than once verbally told me she did not expect repayment since she knows the business has failed (not sure that means anything?) The house is worth $450-470k we have a $150k mortgage, we also have about 30k in credit card debit from trying to stay above water while making this business work. Neither my husband or myself have other jobs, this failing business was/is our only source of income. All mortgage,car,credit card, utilities bills are current and up to date. We have been in this house for 9 yrs and filed for homestead 2 months ago.
So my question is this.. Today I received a letter from my mother in laws lawyer demanding $135k.
Can she force me to sell my house to repay the lien? my understanding was that she would only receive payment on the lien if/when I ever sold the house? is that not correct? also would filing for bankruptcy wipe out the lien she has? would filing Bankruptcy for my business be enough or would i have to file personal bankruptcy also since the lien is on my home? I have extremely excellent credit and was hoping to avoid personal bankruptcy but I can't lose my home, I have 3 small children, and my mortgage is only 1k a month.. I will be living in my car if I lose this house, you cant get an appt for under $1700 a month around here! also will filing for bankruptcy release me from the food tax bills? what a nightmare, if you can shed some light on this so I can sleep tonight I'll never have enough thanks for you!
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