(First the bkforum would never send me a conformation e-mail, I checked the spam folder, so I can only post here. )
My wife is filing bankruptcy due to debts long before our marriage that surfaced because her ex stopped paying his(in their name) mortgage.
A couple of years ago my wife and I opened a line of credit to purchase a piece of property for my son. We used some existing property I had for collateral. The new property was purchased free and clear it was put into my wife's and my name. We went last week in to tell our loan officer that my wife was going to file BK but we still intended to pay the loan. He was understanding but insisted to keep our loan open he would need some additional collateral and suggested we add the property we had purchased with the loan proceeds. We agreed and signed the paperwork to do so. The loan is a balloon and must be renewed every three years. The balloon is up in July so we can't burn any bridges with the bank.
We leased to own the property to my son for him to put a mobile home there. My son has improved the property and has, in his name, a mobile home there and the value of the land has gone up $3500 on the tax assessment. My son he has paid the loan balance down a little over $2,000. We only have a hand written lease agreement.
My question is what effect, if any, with this have on my wife's bankruptcy? She has not filed yet.
My wife is filing bankruptcy due to debts long before our marriage that surfaced because her ex stopped paying his(in their name) mortgage.
A couple of years ago my wife and I opened a line of credit to purchase a piece of property for my son. We used some existing property I had for collateral. The new property was purchased free and clear it was put into my wife's and my name. We went last week in to tell our loan officer that my wife was going to file BK but we still intended to pay the loan. He was understanding but insisted to keep our loan open he would need some additional collateral and suggested we add the property we had purchased with the loan proceeds. We agreed and signed the paperwork to do so. The loan is a balloon and must be renewed every three years. The balloon is up in July so we can't burn any bridges with the bank.
We leased to own the property to my son for him to put a mobile home there. My son has improved the property and has, in his name, a mobile home there and the value of the land has gone up $3500 on the tax assessment. My son he has paid the loan balance down a little over $2,000. We only have a hand written lease agreement.
My question is what effect, if any, with this have on my wife's bankruptcy? She has not filed yet.
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