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Help with Land Contract

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    Help with Land Contract

    Do I need to disclose a land contract? I'm in the process of filing for bankruptcy (chapter 7) and don't understand my attorney. He says it's possible I might have to file under chapter 13 instead of chapter 7 depending on my house.

    Why do I need to disclose this land contract as part of my bankruptcy? As the name on the deed or loan isn't mine, I don't quality for a home equity loan for example, to sell the house on my own, or get tax benefits.

    Could the bankruptcy court force my parents to sell the house? Are there other issues I'm not aware of?

    In 2002, my parents and I entered into a land contract for a house they purchased. The house was purchased for $60,000; they put down $20,000 and financed $40,000. The $40,000 is the amount of our land contract. The bank loan is in their name, as is the deed, and other relative documents. We filed a land contract with the county mainly because they are older and if something should have happened to them I would inherit the house. They handed over the payment booklet for me to make the payments.

    Over the 8 years I've been in the house, the condition has deteriorated due to general wear and tear and also damage by my daughter's pets; it needs at least $10,000 - $12,000 in repairs causing the market value to decline. But if the value of the house is greater, this is why I might have to file under Chapter 13.

    Your advice and insight would be greatly appreciated; I'm really stressed out over this process (started in April)!

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