Unfortunately, Chapter 7, Chapter 11, and Chapter 13 bankruptcy facts are not as straightforward as they might seem — particularly when someone (or multiple someones) mess with the system. And that’s exactly what happened in the case of Tara Humphreys, then 22, and her father, Mike Humphreys. Ms. Humphreys was just 22 years old when her father “asked her to put her name on the farm in case something happened,” CBS affiliate, KII-TV, reports.
Unbeknownst to her, Humphreys actually co-signed a loan on her father’s farm. When she went off to college, things only got worse. Her father, using power of attorney, signed her name on legal forms, delivery forms, and farm equipment order forms. The total amount spent on the farm equipment and deliveries amounted to over $500,000. And her father could not pay it all, not even close. Consequently, “She was to be held liable for credit card debts and debts of a farm and business debts and really to no fault of her own she found herself as a defendant in multiple lawsuit,” Ms. Humphrey’s attorney, Jimmy Veith, says. At that point in time, the trusting college student did not even realize that she had signed into co-ownership of her father’s farm.
Although many of the details have come to light, creditors still required Ms. Humphreys to ultimately file for Chapter 7 bankruptcy. Like Ms. Humprhreys’s, approximately 728,833 individuals and businesses file for Chapter 7 bankruptcy annually (according to statistical data collected in 2013). Debtors must pay a fee of $306 to file for Chapter 7; Chapter 7 bankruptcy help and Chapter 7 bankruptcy attorneys are available at an extra cost.
Ms. Humphreys tells KII-TV she has learned a lot from the experience; she urges others to ask questions and read everything they sign, even if loved ones are in the picture.
Whether you are seeking Chapter 7, Chapter 11, or Chapter 13 bankruptcy facts, the process starts with asking questions, knowing who you can trust, and making certain all debts are legal.