QUESTION
Am I still legally responsible in any way if she defaults on the loan?
Asked on Oct 05th, 2012 on Bankruptcy - Georgia
More details to this question:
I filed chapter 7 bankruptcy including debt of mortgage. However, my name is still on loan with my ex. I didn’t reaffirm the loan. It doesn’t show on my credit report yet my name is listed on loan still. I discharged it in filing.
13 ANSWERS
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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No, you cannot be held personally liable.
Answered on Oct 10th, 2012 at 11:19 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Your question is too complex to answer without more information. Contact your bankruptcy attorney. If you do not have one then talk to a competent bankruptcy attorney in the state where you live.
Answered on Oct 09th, 2012 at 10:40 AM
Personal Injury Attorney serving Gainesville, FL
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Lawrence J. Marraffino, PA
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The answer is a definite no. The fact that it does not show on your credit report is a good thing since it will not bring down your credit rating. You will not be responsible if she defaults.
Answered on Oct 09th, 2012 at 10:27 AM
Because you discharged your obligation to pay the mortgage in the bankruptcy, unless the family court ordered you to pay this debt as part of the divorce settlement, you are done. All the mortgage company can do is conduct a foreclosure sale. But your ex spouse may still have the right to pursue you under the terms of the divorce decree in spite of your bankruptcy. Best regards,
Answered on Oct 09th, 2012 at 9:31 AM
Did you list it? If you did and got a discharge, you do not owe any money if she defaults. If you are contacted about it, get ahold of your bankruptcy attorney and ask what, if anything, to do.
Answered on Oct 08th, 2012 at 4:03 PM
Meredith P. Ezzell
If you did not reaffirm the loan during your Chapter 7 and you have been discharged, then you no longer have any personal liability for the mortgage if your ex-wife defaults. The lender does still have the lien rights in the property and can foreclose but they cannot pursue you for any deficiency balance.
Answered on Oct 08th, 2012 at 4:03 PM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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That would depend on several things; just because you listed them as a creditor doesn't mean the debt is discharged, not with secured creditors. It would be discharged, however, if you surrendered that property and included your ex as a co-debtor on your schedules and petition.
Answered on Oct 08th, 2012 at 4:01 PM
General Practice Attorney serving Crystal Lake, IL
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Bruning & Associates, P.C.
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The answer to this question depends on what your divorce decree says. If you were supposed to remain liable for a portion of the debt and indemnify your ex according to your divorce papers, then you may face problems either in the bankruptcy court or in the state court where you got your divorce.
Answered on Oct 08th, 2012 at 4:00 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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If what you described is accurate, not to the bank but, depending on the order of divorce, perhaps to your ex.
Answered on Oct 08th, 2012 at 10:52 AM
Bankruptcy Attorney serving Oakdale, CA
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Law Office of Todd Whiteley
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This is one of those questions which feels very dangerous to answer conclusively in a public forum without the benefit of the full and specific facts and circumstances. So I will not answer conclusively. I suggest writing the lender (certified mail, return receipt requested), enclosing a copy of your bankruptcy discharge which lists them as one of the creditors that was discharged, and demanding that they remove you from the loan documentation, or provide you with written evidence of their acknowledgement that your debt is discharged, and they have no existing or future claim against you.
Answered on Oct 08th, 2012 at 10:52 AM
The house is the mortgage company's security for the mortgage. Your credit report should state discharged in bankruptcy. The lender can foreclose on the property if she defaults and could pursue her for the deficiency. Your liability was discharged.
Answered on Oct 08th, 2012 at 10:51 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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No you are not personally liable if you have discharged without reaffirming.
Answered on Oct 08th, 2012 at 10:21 AM
Bankruptcy Attorney serving Atlanta, GA
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Jakob-Barnes Law Firm, LLC
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The bankruptcy discharges your personal liability on the loan. Their recourse is to foreclose on the property.The bankruptcy does not take your name off the deed to the property.
Answered on Oct 08th, 2012 at 10:20 AM