This happened in Germany, so I might have some of the legal details wrong.
A German friend adopted a 4 year old girl she had been fostering. They are both very happy. The daughter’s biological mother is a drug addict and didn’t want the child.
Then one day bills start arriving in the post, addressed to the daughter. At first the friend sent them back, there must be some mistake. But more bills arrive, and more. 65,000 Euro of bills.
The daughter’s grandfather had died and left everything to the grandchild daughter, a cheap house and 65,000 Euro of debt. The biological mother could have refused the inheritance for her daughter, but did not do so in time. The house is in a remote poor area of Germany and is not thought to be worth much.
So, the new mother goes to a lawyer, and then the debt court, but under german law this is all legal. The child owes 65,000 Euro and must pay it when she reaches 18.
Of course, the new mother is distraught. The daughter is too young to understand the problem.
The new mother tells me that she could declare bankruptcy now, and in 6 years the debt will be cleared. Or, the daughter can declare bankruptcy when she reaches 18.
My proposal is as follows. First, do not declare bankruptcy now. Use the family money to bring up the daughter.
Second, sell the house. It is being valued, but for now assume it is worth 20,000 Euro.
Write to all the creditors saying “I am 4 years old. I did not cause this debt, and morally I should not have to pay it. I have 20,000 Euro from sale of my deceased grandfather’s house, the man who left me 65,000 Euro of debt. If you will agree to close my debt forever and write it off, I will pay you a share pro-rate along with any other creditors who agree to this offer. So if 40,000 Euro of creditors agree, they will all get (40,000 / 65,000)% of the debt owing in return for formally closing and writing off the debt to them. If you do not agree, then when I am 18 I will have no assets and up to 65,000 Euro of debt I did not incur, and no way of paying that debt. I will declare bankruptcy immediately, and you will get nothing.”
Does this sound a reasonable way of handling this? Is there a better way?
Edit : clarified daughter as grandchild
Submitted November 08, 2018 at 07:56AM by tritellia https://ift.tt/2QuzE8f
