My friend's parents are in debt 2 Million dollars because of some bad investments. They are trying to pay the mortgage on their home. The mortgage is 10k per month. The husband just lost his job and the wife doesn't make enough to cover the mortgage. What are their options? They are asking my friend to give them $2,500 a month for an indefinite amount of time. I told her to tell them to file bankruptcy. What do you think? Please help.
2006-08-18 09:48:19 · 9 answers · asked by Mel 2 in Business & Finance ➔ Credit
They need to give up their extravagant lifestyle. They should sell their huge home (they've probably gained some money on it) and use their gains to purchase a more modest home and pay off some of their debts.
2006-08-18 09:54:38 · answer #1 · answered by Minina 4 · 0⤊ 0⤋
Not enough info to give any advice. Don't know if the debts from the bad investments could be discharged.
You will not qualify for Chapter 7...and with a Chapter 13 you will still be paying the mortgage.
Just based on these facts, I'm thinking they need to sell the home immediately, and talk to a lawyer to see what to do about that $2M debt.
2006-08-18 17:56:43 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The parents need to talk to a credit counselor and/or a bankruptcy attorney. If they owe as much as you say, they will not be able to repay your friend.
If the parents lose their home, your friend might be able and willing to give them a place to live, if they become that desperate. Giving money to the parents to help them out sounds like giving a drink to an alcoholic to tide him over.
2006-08-18 16:57:20 · answer #3 · answered by regerugged 7 · 0⤊ 0⤋
I would check with the mortgage company to see if they are willing to reduce their payments if that fails to work they just might have to sell their house filing bankruptcy could be avery bad headache and not solve anything
2006-08-18 16:56:10 · answer #4 · answered by papasmurf 3 · 0⤊ 0⤋
Just let the house go
do not try to rescue the ship already sinking into the bottom.
just trying to sell the house as quick as possible even with upside down.
First foreclosure the house first, then bankrupcy is last resort
That the valuable lesson for people out there trying to living large, above their mean. It is not a joy , just nightmare when living large
2006-08-18 16:56:52 · answer #5 · answered by Hoa N 6 · 0⤊ 0⤋
Your friend needs to stay away from this, period!! It's a dumb idea! If he does this, he is just asking Murphey to move in with him.
Bankruptcy is also not the answer for this couple. They can work this out and a great place to start is at www.daveramsey.com
Also have them check out "The Total Money Makeover" book.
Lonnie
2006-08-18 17:02:07 · answer #6 · answered by Lonnie M 1 · 0⤊ 0⤋
I would tell them to look into a Chapter 13 at least it will give them a little time to figure out what to do and they will not lose the house.
2006-08-18 16:54:22 · answer #7 · answered by dr.whiteman 1 · 0⤊ 0⤋
I am in the same boat, so I got a job, and I start on Monday
2006-08-22 15:00:30 · answer #8 · answered by jamie_brahan 2 · 0⤊ 0⤋
They need to sell their home and move in to a place they can afford.
Borrowing money is not a solution.
2006-08-18 17:41:27 · answer #9 · answered by BoomChikkaBoom 6 · 0⤊ 0⤋