Posted on: 09th Nov, 2009 10:41 am
My husband and I are divorced and the mortgage is in my name, but off the deed. He resides there with our children as their primary residence. If I need to file chpt. 7(unemployed now)how will that affect the house? I don't want them to lose it as that is all they have.
hi jaynine,
you can ask your husband to refinance the loan in his name. thus, you won't be responsible for the mortgage and it would not be included in your bankruptcy filing.
thanks
you can ask your husband to refinance the loan in his name. thus, you won't be responsible for the mortgage and it would not be included in your bankruptcy filing.
thanks
I believe his credit is really bad and his chances of refinancing are slim. I don't know what other options I have.
As the mortgage is not in his name, he won't be able to include that in his bankruptcy filing but he will have to list the property as his asset. This is because he is the owner of the property. The trustee will judge the situation and you would come to know whether or not he would sell it off to repay his creditors. Contact a bankruptcy attorney and take his opinion in this regard.
It sounds like you are the one getting ready to declare Chap 7? You don't have to include the mortgage in your Chap 7. If you do, the lender can petition to have it removed from the bankruptcy so they can proceed with foreclosure. HOWEVER, you can reaffirm the debt and as long as the payments continue to be made they won't lose the home in foreclosure.
When in doubt consult your bankruptcy attorney.
Good Luck!
When in doubt consult your bankruptcy attorney.
Good Luck!