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what happens with house in case of bankruptcy?

Posted on: 16th Apr, 2011 06:08 am
Hello, my ex-husband and I still own a house. According to our agreement, I am not responsible for the mortgage or any fees associated to the house.
My ex-husband stated that he is filing for bankruptcy. My question is, what happens with he house/mortgage payment in this case? Is the debt going to fall on me? Is there a way i can get out of this situation?
Thank you!
Hi shodrea1,

Welcome to Mortgage fit,

There are two types of Bankruptcy.ch.13 and ch.7.If your ex is filing ch.13 then with the regular payment plan you and he can be able to retain the house but if he is planning for ch.7 then you will not be able to keep the home.you have to give it back to the lender company and then they sell it off.(exception: Home up to $17,425.00 in equity can be exempted from this rule.)

So if you wish to keep the home ask your Ex to file the ch.13 BK.

You can also go through pros & cons of both the bankruptcy

http://www.mortgagefit.com/bankruptcy.html

I think you should guide your Ex to choose the right kind of BK which is most suitable for both of you as you also have interest in the home.

Feel free to ask any further query if you have...

DIPA :arrow: :arrow: :arrow:
Posted on: 17th Apr, 2011 10:18 pm
welcome shodrea,

if your name is mentioned on the property deed, then you'll be liable for paying off the mortgage if your husband is filing bankruptcy. if you have a decree from the court that you won't be liable for the debts in any way, then it might help you in getting out of this situation.
Posted on: 17th Apr, 2011 11:57 pm
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