On 2/1/2015 2:30 PM, Mike Gordon via olympus wrote:
In the US, if the loan is underwater, i.e. the loan now exceeds the value of the house and the owner gives the keys
to the bank, they are STILL
responsible for the balance---UNLESS they file bankruptcy under Chapter 7 for example (straight liquidation), then the
debt is dischargable.
And yet, many things are negotiable, as long as one has physical possession. Knowing about Chapter 7, banks have been
known to trade discharge of an underwater loan for the keys, without further hassle, delays and with the property in
good condition.
As I understand it, the debt is not dischargable under current Spanish law AFAIK, thus making a new start more
difficult. Sorry, couldn't help but chime in on this non photo issue.
Perhaps Spain could use a change in bankruptcy law. But it wouldn't help in the case that started all this, unless the
parents could file, too, which might not be possible with pension income? The big problem appears to be the co-signing.
Married to bankruptcy attorney,
And Authority!
Happy Solvency Moose
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What if the Hokey Pokey *IS* what it's all about?
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