New question about Chapter 13

[texasgal]

All:

We have a loan that has a balance of $6,500 that is not secured, but is guaranteed by a family estate. Can anyone tell me how this would be treated in the Chapter 13? I'm thinking it would be treated the same as any other unsecured creditor, but not sure. Any thoughts?

Texasgal

[lrprn]

We have a loan that has a balance of $6,500 that is not secured, but is guaranteed by a family estate.

As I understand it (and property expert members, correct me if I'm wrong), a guaranteed loan uses the monetary value in the estate as collateral for the $6,500 loan, correct?

What does the original guaranteed loan agreement say are the consequences if the $6,500 loan is not paid back in a timely fashion? That's what will determine if your guaranteed loan is also a secured loan that could put the estate at risk if you file, or if the loan is truly unsecured and your estate is safe.

Another question to consider is if your Texas bk exemptions can fully protect your portion of the family estate itself if you file.

Have you spoken with several bk lawyers in your area about these issues yet? (Most have free initial consultations.)

[texasgal]

I believe the agreement was that should we not make payments, the estate would make the payments. The estate is actually is set-up as a trust for an elderly aunt that suffers from Alzhiemers and at the time of her death, three family members would be beneficiaries. We are current on this and would like to pay it outside of the plan. If at all possible, I would like to keep the estate out of this; because technically, at this time, the estate is our aunts and we do not have an interest.