Can creditors pursue my grandmother's assets if I file for bankruptcy?

Full question:

I am considering letting my house go into foreclosure and filling for debt relief or bankruptcy. My concern is that my name is on my 90 year old grandmothers condo title, bank accounts and investments. Could lenders/creditors go after her assets to obtain payment? All of her assets are held jointly with her, my cousin and my self.

Answer:

When a joint tenant files for bankruptcy, it typically divides the joint tenancy into equal shares. If there are multiple joint tenants, those who do not file for bankruptcy will retain a joint tenancy of their share. Therefore, creditors may not directly pursue your grandmother's assets, but the bankruptcy could affect the ownership structure.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

The choice between foreclosure and bankruptcy depends on your financial situation. Foreclosure allows lenders to reclaim property when mortgage payments are not made, but it doesn't discharge other debts. Bankruptcy can eliminate many debts and provide a fresh start, but it can also impact your credit score more significantly. Consulting with a financial advisor or attorney can help you assess which option aligns best with your goals.