Legal Question in Credit and Debt Law in Texas
Credit Problems
My mother owns 12 acres of land with a farm house on it. Also, she has the house she lives in. She has $40,000 dollars in debt on credit cards. She cosigned for a loan on an automobile for my brother. He let the vehicle go back. The vehicle was sold by the lender with $3000 still owed against it. My mother can't cover the $3000 and will probably have to go to court. This will cause a lein to be place against the property. Would be best to sell all the proberty, my mother is in her 70's, pay off all the debt, or to file for bankruptcy and let the courts take care of the problem? She could move into and efficiency appartment she could cover the payments.
3 Answers from Attorneys
Re: Credit Problems
We would be happy to represent your mother..and DO NOT declare bankruptcy. Hopefully she has filed homestead exemption...but debts such as you mention are NOT liens against the homestead..Only taxes, homeimprovement loans or home equity loans and the original mortgage affect the homestead.
Have her call if she wants assistance.
Re: Credit Problems
We would be happy to represent your mother..and DO NOT declare bankruptcy. Hopefully she has filed homestead exemption...but debts such as you mention are NOT liens against the homestead..Only taxes, homeimprovement loans or home equity loans and the original mortgage affect the homestead.
Have her call if she wants assistance.
Re: Credit Problems
The judgment against her from the auto loan deficiency does NOT operate as a lien against homestead in Texas. Homestead is protected by virtue of law and the Texas Constitution. They cannot get her house or land.
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