Hello, I'm trying to get advice for my parents on their current situation. They are married, age 69(both) and own their own home. Mom still working, Dad is retired and recieving social-security. They have around $400,000 in equity in their house. Now here's the situation: My Dad has lost a lot of money in the stock market over the last few years, and currently owes around $120,000 in unsecured debt. Mostly credit cards with a few bank loans. He has gotten to the point where he can not borrow anymore money, and is taking money out of his trading account to pay the payments on his credit cards. Soon, he will have to default, or file bankruptcy. My Mom is pretty upset with the whole situation and the only way she will help him out(i.e. loan against the house) is if he files bankruptcy, and gets a separation of finances. So, if he/they file for bankruptcy, my qustions are:
Which Chapter do they file under?
Can they keep the house?
How much of the total debt would waived, if any?
Is it even worth it to file?
They have a lot of equity and I know it know it dosn't help the situation. Here is the scenario I'm hoping for: They file bankruptcy, agree to pay a fixed amount by borrowing against the house(hopefully half of what they currently owe), and the bankruptcy prevents my Dad from borrowing more money. They are real close to divorce over this, and hopefully they can work it out.
Which Chapter do they file under?
Can they keep the house?
How much of the total debt would waived, if any?
Is it even worth it to file?
They have a lot of equity and I know it know it dosn't help the situation. Here is the scenario I'm hoping for: They file bankruptcy, agree to pay a fixed amount by borrowing against the house(hopefully half of what they currently owe), and the bankruptcy prevents my Dad from borrowing more money. They are real close to divorce over this, and hopefully they can work it out.
