Expert: Phil Nicols - 4/28/2010

Question
My father owns land in upstate New York. A while ago my father co-signed for my brother for credit cards so he can start a business. Eventually the business went bust and my brother owes too much money on the credit cards that he cannot pay. The credit card companies are now after the co-signer (my father). My question is since he cant pay either can they go after his land?

Answer
ok this is not a good situation to be in.

First a disclaimer... Im based in Ontario Canada. Laws in upstate NY will no doubt be different than in Ontario Canada.

2nd) Im a real estate broker not a lawyer.

Here in Ontario, it depends on how the title is held. If your fathers land is held in a separate company, he may have some protection from this sort of thing.

if its in his name personally, it could be worst.

there are some caveats here. I have never heard of a credit card company going that far.

Yes he cosigned, so I would say yes, they can go after him but to the expert of making him sell land to repay?

How much is owed on the CC's? is it that substantial?

Id get a lawyer on this asap! also talk to a trustee in bankruptcy right away. there may be options. those people negotiate with your creditors, maybe some sort of re-payment plan.

if all else fails and they try to force your father to sell land, I would be going to the newspaper and TV broadcasters in your area! CC companies can do without the bad press!

But you still have to get this debt paid off!

For future, make sure assets are in a separate company. You want to own nothing personally.

Good luck with this and please let me know how it turns out.

best, Phil

pnicols "at stockwellrealty.com