My question involves bankruptcy in the state of: Indiana
Probably will have to see a local lawyer but here goes...
Spouse is 74, not good health. I am 65, also not good health. We purchased residence in 1992 before being married as tenants in common. Never changed it after we married.
Did debt consolidation in 2015, which was a joke, but ran out of money to pay all the credit cards off. This left approximately $18,000 on one, $8,000 on another and about $2,000 in my medical bills. All of these have a loan on residential property. credit cards were on husband's name only, medical on my name only. Debt consolidation also left us with a $18,000 tax bill to IRS we are paying on installment. We live on social security only. Husband went on at 62, I went on disability at 63, now social security. Liens were all placed when we were on social security as only income.
We want to sell the house or do a reverse mortgage because we have more medical bills coming in and the house needs work done that we cannot afford. We want to move out of it into something we can handle. But we still have about $30,000 mortgage on it. Plus the approximately $30,000 on the liens. So we would not get much out of the property once these things are paid off. Which I don't think will really do us much good except to get out of it.
I do have a 2nd residence in my name that my granddaughter is buying on land contract from me at about $6,000 a year. She is paying it on time. But still owes about $60,000 on it. She can not get a mortgage on it which is why we did land contract.
We want to know if we would be wiser to just file bankruptcy? Someone told us that if husband filed only, the liens on residence would not go away. Someone told us that if we both filed then granddaughter would lose my home she is buying unless she could refinance and pay that money but then that would have to be used to pay liens. Someone told us liens would never go away unless we settled with the people with the liens. But to pay off the liens would do us no good and we would not have any money unless we could refinance or reverse mortgage and no one will refinance with the debt we owe and what we have on liens on the house.
We expect to have another $10,000 to $20,000 in medical bills this year, also.
Any advice or suggestions. Thanks.