What happens in bankruptcy? [View All]

[abelenkpe]

I just found out my parents filed for bankruptcy recently. This is a huge blow to them. They were making around 350,000 a year up until 2008 when business dried up for my pop's business. They had two rental RCI places and a home they lived in since the 70s but kept refinancing. They refi'd around 2007 at the absolute top of the bubble for the DC area and had a mortgage payment of around 4000 a month for a home they originally bought for 70,000. :crazy: They always had lots of credit card debt, took vacations and have been raising my sisters three kids. So as one can see they were highly leveraged and living far above their means despite making good money. I'm super worried about them though. And mad. They haven't told anyone and only just admitted it to me.

Any idea what will happen to them? Will they lose their house? Still be able to care for my sister's kids? Anyone know? They think they can keep this a secret and go on as they were before. Is that possible?

I know they are long overdue for a comeuppance. I left their home in 1985 and am their only kid who actually left the nest and isn't still dependent on them somehow. My brother and sister do not know what's going on. Just trying to figure out what comes next and how this will all shake out so any info would be greatly appreciated. Thanks!