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.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).