My mom is in debt and doesn't know what to do. This is long.?

Question

my mom is 3 payments behind on her mortgage. Her company she owned is not making any money and she is flat out broke. She tried to refinance her house but they said she made too much money. Meanwhile her company is now broke and has NO MONEY. She is being sued personally by 2 different Vendors because she used her home as liability for the company and now can't pay them over 30,000.00. She is also being sued personally by an investor whom invested 50,000.00 into her company. Is bankruptcy really an option. I don't understand what all they will take from her if she files or if she is even eligible. I feel bad for her, and I don't know how to help. She is currently looking for another job but no luck so far. I know this is very difficult situation but does anyone have any advice they can offer? What is she suppose to do now?

Answer 1

wow, ummm ya as hard as it sounds I'd def go for bankruptcy if she owes that much money.. Bankruptcy is a icky thing to do but you get over it eventually and w/the amount of money your mom owes filing bankruptcy would be the best thing. However, if these investors go after your mom in court she might end up having to pay these people anyways since they did infact put large sums of money into this buisness w/no money coming back to them. If she files bankruptcy they might take her house since she did she used her home as liability and they'd take anything else from her she bought using their money or anything she bought using any other line of credit. She needs to go talk to an attourney and her bank and a financial counselor perhaps to get this all straightened out. Im sorry about your mom's situation, I hope everything works its way out for you both.