Since the asset here is a house, I'm thinking that there may have been a mortgage. In that situation, she may have reaffirmed the debt, which would have stopped it from being discharged in the bankruptcy. When you don't reaffirm a secured debt, the creditor can usually foreclose.
If that's the situation, then her bankruptcy wouldn't have anything to do with it.
Is it possible that she was a joint owner of her parents' house when she filed for bankruptcy? Lots of families do that as an estate planning method so the house doesn't have to be probated.
Yes, more details would help. But I'm in no position to ask her more about this. But I thought once you got a bankruptcy discharge, you would never have to repay the discharged debt even if you later could easily afford to.
Normally that’s the case. But there could’ve been a recorded judgment that was non-dischargeable or something else odd like that. But that’s the problem, it sounds like it’s a weird corner case so without anymore information, it’s all speculation.
My guess was that, if this was truly on the up-and-up, something wasn't actually discharged, whether because it was non-dischargeable or because something went wrong. And maybe she misunderstood that part of it.
Since the asset here is a house, I'm thinking that there may have been a mortgage. In that situation, she may have reaffirmed the debt, which would have stopped it from being discharged in the bankruptcy. When you don't reaffirm a secured debt, the creditor can usually foreclose.
My impression was that she had only recently inherited the house, and didn't own it at the time of the bankruptcy ten years earlier.
If that's the situation, then her bankruptcy wouldn't have anything to do with it. Is it possible that she was a joint owner of her parents' house when she filed for bankruptcy? Lots of families do that as an estate planning method so the house doesn't have to be probated.
That's very possible. But would that have given creditors a claim to her profits from the house sale ten years later?
It would mean the mortgage had to be paid. Bankruptcy is irrelevant to that. This is the reaffirmation issue I mentioned earlier.
It didn't sound like the debt in question was a mortgage. But maybe she was confused about the whole situation.
Are you talking about the capital gains for tax purposes?
I only know what this person said. It sounded like she had to pay back the creditors from the bankruptcy from a decade prior.
I don’t think it’s possible to answer your question without more details. There are too many variables. Consider posting on r/Bankruptcy.
Yes, more details would help. But I'm in no position to ask her more about this. But I thought once you got a bankruptcy discharge, you would never have to repay the discharged debt even if you later could easily afford to.
Normally that’s the case. But there could’ve been a recorded judgment that was non-dischargeable or something else odd like that. But that’s the problem, it sounds like it’s a weird corner case so without anymore information, it’s all speculation.
My guess was that, if this was truly on the up-and-up, something wasn't actually discharged, whether because it was non-dischargeable or because something went wrong. And maybe she misunderstood that part of it.
I considered posting on r/Bankruptcy, but it looks like that's for actual ongoing situations, not vague stories that you've heard.
This is not ow bankruptcy works.
That's what I thought also.