Bankruptcy

September 17th, 2009 by Questions

My wife and I live in one of my parents house which we are renting. They live in there own house. We have 2 youths who go to school. Lost my job and wife is earning just to make ends meet. Have over $50K in unsecured debt. Parents been nice and not charging rent last few months to help out. If filing for bankruptcy for fresh start, because we live in there home, does bankruptcy affect them in any way? Do my parents have any legal right to get lost rent money back if I go to bankruptcy?

Posted from: British Columbia

Questions

One Response to “Bankruptcy”



, A licensed trustee said:

Unless your parents co-signed or guaranteed your debts, they will not be linvolvedin the process.

Your second question about your parents recovering lost rent shows you don’t understand the process. There is no pool of money that your creditors will get paid from. The only money your creditors will receive will come from you during your bankruptcy. Based on your income and assets, you will be requried to make some form of payment to your trustee and at the end of the process, after your trustee has been paid, whatever funds are left over are divided amongst your creditors on a pro-rata basis. If your parents have a valid claim (that you owe them money) then they may aprticipate in those payments – if there are any…

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