QUESTION
Am I still on my mortgage after filing for chapter 7 bankruptcy?
Asked on Jul 01st, 2011 on Bankruptcy - Georgia
More details to this question:
I was divorced 18 months ago and filed chapter 7 12 months ago. My ex is doing a short sale and the mortgage company said they require my signature because I'm still on the mortgage. Wouldn't the chapter 7 take me off the mortgage?
11 ANSWERS
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Filing bankruptcy does not remove your name from the mortgage.
Answered on Jul 04th, 2013 at 1:50 AM
Chapter 7 doesn't take you "off" the mortgage, it only extinguishes your personal liability to pay back the mortgage note.
Answered on Jul 04th, 2013 at 1:46 AM
Bankruptcy & Debt Attorney serving San Diego, CA
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Jackie Robert Geller Attorney at Law
No. You may have been discharged from personal liability but you are still a signer on the loan.
Answered on Jul 04th, 2013 at 12:41 AM
Bankruptcy Decision Attorney serving San Diego, CA
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Law Office of Daniel G. Shay
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It is true they may need your signature to release the lien. The Chapter 7 will protect you from any liability.
Answered on Jul 14th, 2011 at 12:41 PM
You are still on the mortgage until you perform on your intent. If you filed your bankruptcy and stated that you intend to keep current on the mortgage then you are still on the mortgage and are liable for the debt. If you stated that you intend to surrender the property you can bring your bankruptcy case number to the mortgage company and provide them with the evidence they need that you have surrendered your interest back to the bank.
Answered on Jul 11th, 2011 at 10:38 AM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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Right. You have no liability. If you filed jointly, I don't even recommend a short sale but rather that you just let it go into foreclosure. I'd send a letter to the mortgage company with a copy of your discharge and tell them you're not liable to sign anything. If you do sign, make a clear note that you were discharged and you are signing merely as an accomodation to your ex and that you are not liable for ANY further costs.
Answered on Jul 11th, 2011 at 10:00 AM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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Your obligation on the mortgage has been discharged, if they are enjoined from collecting against you but your name remains on the piece of paper so just sign and be done with it.
Answered on Jul 11th, 2011 at 9:44 AM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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Chapter 7 does not affect secured debt such as a mortgage. You may not be personally liable for the debt but the lien of the mortgage remains and your name remains on the mortgage contract.
Answered on Jul 08th, 2011 at 7:49 AM
No the chapter 7 gets rid of your personal liability to pay back the note, but you are still on the mortgage, and, I assume, still on the title to the property.
Answered on Jul 07th, 2011 at 4:29 PM
Bankruptcy discharges do not "get rid" of those debts, they simply remove you from any personal liability for those debts. What they are likely discussing, however, is that you are still on TITLE to the property, and they need your signature in order to complete the title transfer for the sale.
Answered on Jul 07th, 2011 at 4:28 PM
Glen Edward Ashman
Hopefully you used a lawyer. If you did your lawyer explained things. If you made the mistake of not having a lawyer that explains your confusion. In a Chapter 7 the mortgage lien survives the case. You simply are no longer liable unless you reassume. Having said that, it would be a horrible mistake for you to sign off on a short sale under those facts. Do not do it. Signing the wrong paperwork in that case is dangerous and a short sales does not help you (unless you reaffirmed). Discuss this with your lawyer. Do NOT discuss this with your ex.
Answered on Jul 07th, 2011 at 4:27 PM