Bankruptcy with joint mortgage question

[TheEnd81]

My mother is filing bankruptcy soon and we have an investment property together where both of us are declared as joint tenants on the title. I am the primary recepient on the loan and title. If my mother files bankruptcy, will it have any affects to me or my credit? Is a refi required to remove her from the loan? Thanks,

[lrprn]

My mother is filing bankruptcy soon and we have an investment property together where both of us are declared as joint tenants on the title. I am the primary recepient on the loan and title. If my mother files bankruptcy, will it have any affects to me or my credit? Is a refi required to remove her from the loan? Thanks,

Your mother is filing bankruptcy, not you. It won't affect your credit rating at all. If a mistake is made and you see anything related to her bankruptcy on your credit reports, challenge that and have it removed immediately.

As far as the co-owned property goes, that could be a big problem if she can't protect the property with her state bankruptcy exemptions. Right now she's considered the 50% owner of the property. Since you say she's filing soon, renegotiating the loan to remove her from that and changing the deed as well during the year prior filing can be considered bankruptcy fraud (hiding of assets). You don't want to go there.

If your mom can't protect her 50% of the property with her state exemptions, then depending on how much equity there is in the property, it's possible that her trustee could force the sale of the property just to get at her 50% share.

You need expert legal advice from several experienced bankruptcy lawyers in your area to see how this situation will play out if she files. Most give free initial consultations. Do this RIGHT NOW before she files to find out how this investment property may be affected.

We can help you sort this out better if you tell us what state your mom is in and if she's planning to file Ch 7 or Ch 13.