My question involves collection proceedings in the State of: Indiana
I am over 65 and on Social Security. I was previously on disability at age 62. My husband is 73 and on Social Security (which he took at age 62). We receive no other income. We do own our own home. In 2014 we contracted with a debt consolidation company (never again) to pay off some of our credit card debt. We ran out of money before we could pay them all off. As a result, we still owed on 3 of them. They took us to Court and won judgments against my husband (I was never on the cards and they never attempted to collect from me). We have not paid on them since 2014.
We just attempted to refinance our home due to it needing some repairs and we have no other way to pay for them (need new roof, and basement leaks). Unknown to us until the title search came back is that these 3 judgments have liens on our home totaling $41,782.
We also owe the IRS approximately $18,000 due to these settlements showing us as income. (We never realized these write-offs would be considered as income and did not realize that this debt consolidation company would take approx. 40% of the payoff as their "fee". Believe me, if we did we would never have went this route. ) Hind site is always better.
But, we are paying on the IRS bill but in no way can afford to pay it, and these credit card bills of $41,000. Any thoughts or suggestions? Would a local attorney be able to help? I am trying to find out if we would have recourse on this and hire a local attorney before I waste any more money trying to fix this.
BTW.. I am told that we can not file bankruptcy as I own 1/3 of my parents home with my sisters and we would have to sell this and I own 1/2 of a home with my granddaughter and would need to sell this. My one sister lives in the house and my granddaughter lives in the other. Could my husband file bankruptcy singularly and if so, what would this do to our home or the liens on it?