Need advice

Posted on Wednesday, March 5, 2008

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I need help!

Between me and my wife we owe about $63k. Roughly 40k is is credit card debt and the rest i borrowed from my mother who took a second mortgage on her house. The problem is that she now wants her money back because we have been missing payments to her.

I have tried everything I can tink of, teh bank turned me down for a consolidation loan, my family can`t/won`t help anymore so what can I do. Will bankruptcy help? or maybe a proposal?

As for income I make about $2300 after taxes. I dont know what to do but I need some advise.

Thanks!

Filed under: Bankruptcy
 posted by Questions @ 11:17 am
1 Expert Comment:

 At March 8, 2008 | 1:43 pm , Barton Goth GCO Bankruptcy Trustees Said...

This is a tough situation as you have borrowed money from a family member who is now in risk because of this.

You can file a bankruptcy or a propsal, and this will deal with all your unsecured debt (including your monther), but during the bankruptcy or proposal you cannot make payment directly to her as a result of the loan. This would create an unfair preference to your mother when leaglly speaking she is of no different status than the rest of your creditors.

However, after a bankruptcy or a proposal is filed, your unsecured debt is eliminated and you can choose th help your mother in any way you like.

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