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Yes, there are 2 houses involves. One is deeded under my sister and my name. I'm on the loan on that house. I'll call it Kadi court house. Technically, she owns it but I co-signed it for her years ago. The other is the Harrington house which my husband and I own together.
By the way, are you a bankruptcy lawyer?
Let's say, the Kadi court house is appraised for $900,000 and the loan balance is currently $700,000. Now, her share and my share of equity is now $100,000 each. What would happen?
You indicated that her filing for bankruptcy would not affect my husband and my assets including the Harrington house. But just to add another layer of protection, would you recommend creating a single member LLC and titled the Harrington house under that?
One last question that i forgot to ask - would her filing for bankruptcy affect my credit? It's now below average, my FICO is 625.
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