Legal Question in Bankruptcy in Indiana

Property

Because of some debt issues my mother has been advised by an attorney to give up both her properties and file Chapter 7. These properties consist of her home of which she has lived in for 30 years and her rental property. She is 64 years old and I can't understand why she must give up her home. She currently is the caretaker of a 2 year old nephew. Can you guide us to information on maintaining one's property when bankruptcy will be filed. She's willing to give up the rental property.


Asked on 4/30/01, 4:36 pm

2 Answers from Attorneys
Dorene Philpot Philpot Law Office

Re: Property

I would need to know more information than you included in your post, but a person is allowed to keep only $7,500 in equity in a family home. A couple can keep $15K.

The rental property could possibly be considered her "job" and might be exempt for that reason, though I suspect the bankruptcy court would want to liquidate it to pay the creditors.

Any money your mom has in a retirement fund would be exempt, though.

Seems silly for her to liquidate the homes for the creditors when she might be able to roll the money into a retirement-type fund and have it be exempt.

Sounds to me like she needs some debt counseling by someone who knows what they're talking about. And seeing an accountant would probably be well worth the cost, too.

Hope this helps. Sounds like a tough situation.

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Answered on 6/19/01, 8:40 am
C. David DuMond Law Offices of David DuMond

Re: Property

Sorry, but there is not enough information here to prepare a reasoned response. What do you mean by "debt issues?" Whose debt? Bankruptcy, for a person who owns two parcels of real estate, seems like a drastic remedy. Another attorney should be consulted immediately.

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Answered on 6/18/01, 2:13 pm


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