Buying a house, when fiance is filing bankruptcy
June 10th, 2007 by Questions
My fiance is going to claim bankruptcy next month. We currently do not live together. I am considering buying a condo in the next three months, at which time he would move in with me and pay me rent. How would this affect his bankruptcy? Would my income be added into a household total, thereby adding to the surplus income he has to pay? Are there any other problems or risks we need to be aware of? Thank you!
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June 11, 2007 at 10:58 pm, Barton Goth GCO Bankruptcy Trustees said:
As long as the condo is in your name, you provided the money for the down payment and it is in no way connected to your fiance then the only thing you have to worry about is the surplus calculation you referred to.
However, the surplus calcualtion starts by looking at total household income, but because you aren’t filing bankruptcy the resulting surplus is then multiplied by your fiance’s percentage of the total household income, so the result may be marginal. For more details on how this works you are best to contact a local trustee dircetly.