Successful bankruptcy while keeping a house jointly purchased with parents.
Few years ago, our client’s parents purchased a $240,000 house and put their names with their son’s name on the deed. Their son was a business man operating a small store but ended up with having $300,000 debt to expand the store, which was not successful. The son was not able to pay the debt and considered filing a bankruptcy. However, the parents strongly objected to it because they were worrying about losing the house.
Song Law Firm’s bankruptcy team analyzed the son’s financial and business situations and concluded that filing a bankruptcy was the best solution to him. However, we also understood why his parents did not agree with the filing.
So, Song Law Firm’s bankruptcy team suggested a solution, which was accepted by the parents immediately: The son has 1/3 of the house’s total value, which was about $80,000. His parents did not have much money to pay off their son’s debt but were able to pay for the son’s share. The parents were able to keep the house and the son finally filed a bankruptcy, which was completed successfully.