Personal Bankruptcy Bankruptcy

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I took a 20,000.00 pay cut, and now find that it's almost impossible to keep up with my bills. I've been late, actually overdrew my account & had a check returned on me, and if I wasn't living with my mother, there would be no way to pay rent. I talked to one attorney regarding filing bankruptcy. He advised that since my mothers house is in my name, and she has life time rights to the home, that if I file then I would lose the house upon her death. Is this true? I've been told by friends that you wouldn't lose your home. I've never been in such a financial situation in all of my life, and I'm getting very "scared". I'm looking for a 2nd job, just to try & keep ahead.......Thanks for any help her advise.....I live in VA if that makes a difference in the laws.
I'm not sure I understand the situation. First, how is it your mother's house if the title to the house is in your name? Or do we have that mistaken. Second, why did the attorney tell you that you'd lose the house? It doesn't make sense about lifetime rights to the house if it is yours... something is missing in the relay of information.
bankruptcy question

I will try to clarify the situation. The home was my mothers, my name was on her deed, when my husband & I split, my mother had the deed put back in her name only, which was ok with me. As she grew older, and her health failed, she again had her deed changed to have the home only in my name, reserving life-time rights to the estate/home. Now, the problem is, that due to my job loss, and a 20,000.00 a yr pay cut, unexpected large bills, I am barely making it. I talked to an attorney regarding filing for bankruptcy, but since the home is in my name, upon my mothers death, which would end the life-time rights......I'd lose the house. Is this true? I've contributed to this home as if it were my own, since I've lived with my mother almost my entire life, other than the 2 yrs I was with my husband. Are there any options? Can they take put me out on the street so to speak, if I file for bankrupcy? Thanks for any help you can give me.
Your attorney probably knows what he is talking about and you should get all the facts straight with him. I am not a specialist in bankruptcy in VA but I have read that the bankruptcy exemption with regard to your residence is, at least with regard to certain states that I am aware, based upon your equity in the home and a certain exemption. It doesn't make sense that a person can keep their $10,000,000 home and declare bankruptcy and just wash away all their debts.

Here's the way I believe it works in NJ. If a sale would yield less funds than the exemption then you would keep your home. For example, if you had a $100,000 home and after deducting your mortgage of $80,000 and expenses to sell the home of $10,000, there would be a net of $10,000 from the sale. If you lived in New Jersey and had a an exemption of $15,000, the sale of the house would be less than the exemption and you could keep the house. In your case however, it seems that you have much equity in your home and if your state works the same way you may be above the line of the exemption.

Additionally, what you have is a residuary interest in the house with your mother retaining a life estate. Those words are the legal terms for what interest each of you has in the property and you understand. What is interesting is that having such a life estate makes the house very difficult to sell -- who wants to buy a house where they have to wait for someone to pass on before they take title? Could be 5 years, could be 15.

This is not a simple situation and I think you should not worry about things just yet. The house is in your mother's name at this point and hopefully she'll live a long life for so many reasons more than just dealing with the house. It is possible that you could take out a loan on the house. You do have some options here so consider them. Perhaps you may also need to discuss these options with an accountant. So keep your head up and be positive...
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