bankruptcy divorce mortgage
Bankruptcy and foreclosure?
Say a couple is married, and the husband is listed as the co-signer of the mortgage the couple buys. Two incomes are necessary to pay the mortgage. The couple divorces and the ex wife files for bankruptcy (don’t know if it was 7 or 13). Now, both parties are left with a large debt, and the house goes into foreclosure. Does the husband have to file for bankruptcy? If he does, does he lose his vehicles that he has been paying off in full every month? is there some way to protect the assets he does have?
By the ex wife filing bankruptcy, does that make it so that the ex husband is out of debt? Does the debt of the lost house go with her name or with him?
It sounds to me like she filed for chapter 7 which eliminates her unsecured debts, but she probably requested to keep her house and cars and such. With her filing, that only took care of her debts and didn’t touch any of his. If the husband cannot catch up his mortgage payments, then bankruptcy may be an option. As long as it is done before the sale of the house in the foreclosure then he can keep it. No matter which he files, 7 or 13, he can keep his cars and such too. However, since the house is in foreclosure, he will most definitely have to file a chapter 13 so that the arrearage can be paid through the plan. If he defaults on the mortgage after the banrkuptcy is filed, then Title 11 of the United States Code allows the mortgage company to file a Motion for Relief from Stay to take the house. The same can occur on the vehicles too, so tell him to make sure he makes his regular payments to the secured creditors (i.e. the mortgage company and the place he owes for his cars) as well as makes the plan payments so that he can keep the house. Once all the payments have been made in the bankruptcy, then the house payments will all be considered current and he will be on his own to make sure he keeps it that way.
Did their divorce not mandate that one quitclaim the house to the other? Who is in possession of the house? In the bankruptcy, either one can surrender their interest in the house to the other.
|
|
The Two Income Trap: Why Middle-Class Mothers and Fathers Are Going Broke $2.90 More than two decades ago, the women’s movement flung open the doors of the workplace. Although this social revolution created a firestorm of controversy, no one questioned the idea that women’s involvement in the workforce was certain to improve families’ financial lot. Until now.In this brilliantly argued book, Harvard Law School bankruptcy expert Elizabeth Warren and business consultant Amelia … |
|
|
Busted: Life Inside the Great Mortgage Meltdown $0.79 The fiasco that sank millions of Americans, including one journalist, who thought he knew better.A veteran New York Times economics reporter, Ed Andrews was intimately aware of the dangers posed by easy mortgages from fast-buck lenders. Yet, at the promise of a second chance at love, he succumbed to the temptation of subprime lending and became part of the economic catastrophe he was covering. … |
|
|
The Big Score – Getting It & Keeping It – Buying Power for Life $24.95 Linda has dug into more than 14,000 credit reports. She has seen it all and she has fixed it all. “When I went in search of a user-friendly, straight-talk book about credit scoring, one written by a credit expert with actual hands-on experience who really understands the inner workings of the credit system, I was stunned to come up completely empty handed. I instantly realized that it was my mis… |
