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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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My mother and I have been living together for most of our lives,the

Customer Question

My mother and I have been living together for most of our lives,the same house or across the street from each other. When my dad died in 2003 we lost 2/3 of our income. Mom and Dad had some outstanding credit cards that we could not cancel because they were joint,(we did kill off the rest in his name alone without having to pay them).I had just been thru a divorce a few years earlier and was left with all of the debt,in exchange for full custody and supervised visitation because he had tried to kill the 3 of us.Over the years we have had to pull money off the credit cards,or use them to pay for prescriptions and food.Over the last 18 months this has become the only way we could pay for things for the most part.As you have already quessed we now cannot pay the bills that we have accumulated.We still have the family home,under contract, and will just clear the $192,000 mortgage,our mobile home does not have a mortgage. Should we consider bankruptcy or debt relief of 40%-60%?
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 8 years ago.
What state do you reside in?
Customer: replied 8 years ago.

Penrose, North Carolina

Already Tried:
We have been going without food and everything we can think of to keep these bills current, but we just have no means any longer.The family home is on a lease purchase to close anytime within the next year and a half. We do not want to lose that contract. We won't be able to get any proceeds from it but we also don't want to kill the price of houses in the neighborhood as they are all close friends and this is a smasll town. Along with that we don't want to put a mortgage on our mobile home. The house contract is for $206,000, the mobile home is worth just under $100,000, if not a little lower with this economy. My mom and I do have 201 shares of Walmart stock, thats the only thing dad left mom and she wants to keep it. We have two cars,a 95 Crown Victoria with 160,000 miles and a 96 Ford Explorer with 270,000. We have been contacted by a debt relief company that wants $199 set up fee, $85 per month and 5% of the total of debt they handle about $75000 and for that they claim they can relieve the debt down to 40-60%. We really need to do a bankruptcy and kill it all off, except for a college loan that mom endorsed for her granddaughter, federally protected, that we pay every month. The granddaughter dropped out of school and we don't know where.We have submititted a forbearence on that loan to give us a little time. That will reduce the payment in half for the first 12 mos, and then interest only for 12 mos, then back to paying it, and you can only do it once. I don't know if that could go in the bankruptcy. The primary on it is her granddaughter, she is just the co-endorser. Please, Please help us. I have good insurance, but my medicare part D for prescriptions reached its maximum in early aprli, and they claim that I have not paid the gap so I could go into catastrophic. Without that my prescriptions run about $1700 per month. So I have been renewing my pain medications for my migrianes and the prescriptions Walmart will do under their $4 plan.We've bankrupted bef
Customer: replied 8 years ago.
I have not accepted any answer today, and have not received a response. Please change this on your records. Thank you
Expert:  Ellen replied 8 years ago.


Thank you for your question. I am happy to assist you.

You can consider filing a Chapter 13 bankruptcy.

A Chapter 13 bankruptcy could eliminate the high interest rate of your credit cards and restructure your unsecured credit card debt over a 3-5 year period. At the same time it would allow you to retain the mobile home and the stock.

Although a Chapter 7 bankruptcy could discharge (erase) all of your credit card debt, you appear to be over exemption and thus would lose the stock and/or mobile home.

Here is a link the North Carolina Bankruptcy exemptions:

I hope that the information which I provided was helpful to you.

Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.

Thank you,


Customer: replied 8 years ago.
I will have to go thru the bankruptcy laws for N>C> Can we deed the house and stock to someone else to protect it. Somehow I remember that it has to be a legitamate sale where we show the amount we got for it, and if not they can overturn the sales and include them in our assets and possibly charge us with sometype of fraud or something. Is this correct?
Expert:  Ellen replied 8 years ago.

That is exactly correct.

Best of luck to you both.

Thank you,