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DrakeLAW, Attorney
Category: Bankruptcy Law
Satisfied Customers: 754
Experience:  Attorney at Drake Law Firm PLC
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I have a partner of 27 years. I have over $60K in credit

Customer Question

I have a partner of 27 years. I have over $60K in credit card debt, and I am beginning to drown financially. I am 63, and collect $1100/mo. in Social Security, and I get my health insurance via Obomacare. We are not married, as his income (appx> $60K/yr would count as income for me, and my health insurance cost would skyrocket. We have a HELOC of $195K, of which we owe $26K, and he has CC debt of appx. $8K.
I would like to declare personal bankruptcy. We own our home (worth appx. $200K) as joint tenancy with right of survivorship. I would like to take my name off the deed, and create a life estate for me, to insure I always have a home.
I was thinking that by making him sole owner, that I would not have the home as an asset to be used as a means od discharging any bankruptcy debt, thus saving the house for us both, and getting rid of most of the debt, and not affect his credit. He could then keep his good score, and put me on one card with him, with me having a $1000 ceiling on my charging capacity, preventing me from going down that path again, and keeping me accountable to him about our finances. He admits that half of all the debt is really both of ours, and has agreed to this plan, as we get rid of most of thr debt, keep the house, he keeps a good credit score, I get to have a charge card in his name that will not endanger him and still allow me some financial freedom, and I always have a place to live, because he can not sell the house, as long as I am alive.
I would like feedback on how a lawyer views this plan, and advice on how to carry out a plan that saves the house and discharges most of the debt, without going afoul of the law. the truth is that he has paid most of the housing expenses, and he should not loose the house due to the debt, and by transferring the qwnership to him, I am actually "paying" him back money I owe him.
Finally, my biggest personal asset is my auto, a 2011 Lincoln MKZ Hybrid. It is in great shape, and I do not want to sell it to discharge debt, as it gets great gas mileage (34+ MPG), which saves me a lot of money. Is there a way I can put the car in his name, to shield it as a asset, and yet still not allow him to keep the car for himself?
Thanks, Allan
Submitted: 11 months ago.
Category: Bankruptcy Law
Expert:  DrakeLAW replied 11 months ago.

Hello and welcome to JustAnswer, my name is ***** ***** I am an attorney. Please note:This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. This question and response may be viewed by other parties as noted in JA’s terms of service. By continuing, you confirm that you understand and agree to these terms.

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What state are you in please?

Customer: replied 11 months ago.
Expert:  DrakeLAW replied 11 months ago.

The worst thing you can do before filing bankruptcy protection is transferring assets to others, do not do it as it will result in the loss of those assets. We need to use various exemptions available by law to protect assets.

Before I suggest something, I am sorry, I need to clarify one more point. You say the house is worth approximately $200k and that you have a HELOC of $195k of which you owe $26k. Does that mean you can borrow up to $195k but currently only have $26k borrowed against it?

Stated another way, as of now, there is about $174k equity in the property?

Expert:  DrakeLAW replied 11 months ago.

Also, you say partner, I want to make sure you are not married to one another?