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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2863
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I am in hock up to my ears. My savings are drawn down but my

Resolved Question:

I am in hock up to my ears. My savings are drawn down but my credit cards are not. My income is ~25k from pension ans SS, plus a little from p/t teaching. I was told that, because I was supporting my gf until this year, I am liable in bankruptcy for the money spent on her rent, indeed, that they might come after *her* for it. I will be selling my condo soon and at least have enough to settle with the banks for less than the full amount, if they're willing. In light of the above, is bankruptcy still an option?
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 3 years ago.

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

so, you were giving your girlfriend a gift of rent for a number of months?

Terry L. :

is that what happend?

Terry L. :

the money you gave her, could be considered preferential, and the court could go after her to get the funds back if you file chapter 7. The preference issue allows the trustee to go back 2 years to collect that money

Terry L. :

Are you there?

Terry L. :

So, with chapter 7, the trustee can go get any money you gave her in the last 2 years to pay your creditor.

Terry L. :

So, if you wish to protect your girlfriend, you can look at chapter 13 to protect her. You can pay back a portion of the debts to protect assets,and wouldn't have to liquidate the condo to do so.

Terry L. :

So, chapter 13 may be the preferred option at this point.

Terry L. :

Most bankrutpcy attorneys offer free consults, so that should be your next step.

Terry L. :

let me know what questions you have.

Terry L. and other Bankruptcy Law Specialists are ready to help you
Customer: replied 3 years ago.
We did consult an attorney who (for the 2-year reason you stated) advised me to sell rather than declare. I had heard from a lawyer friend that 4 months was the time, not 2 years, but he's not in Florida. That's why I asked.
Expert:  Terry L. replied 3 years ago.
Its 2 years
You can file chapter 13 to protect the assets, or if you wish to just sell, and pay off the debt, and avoid bankruptcy too, thats always an option