QUESTION
Can I file bankruptcy on our mortgage without my wife being affected?
Asked on May 19th, 2011 on Bankruptcy - Georgia
More details to this question:
My wife and I are estranged. We both are listed on the mortgages, but I am in far more than she in debt. Is it possible to file bankruptcy without her doing so with my bankruptcy freeing her from the debt? Could I in turn file a chapter 7 and she files a chapter 13 so that she may keep the house and stripping the second mortgage away as it has negative equity?
5 ANSWERS
Spouses can file separate bankruptcies but without her filing for relief, your bankruptcy would not affect her liabilities.
Answered on May 24th, 2011 at 1:44 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Filing for bankruptcy by one spouse will not relieve the non-filing spouse from the mortgage debt. Although one spouse can file bankruptcy without the other spouse joining, if she is listed on the mortgages she still owes them. Your bankruptcy will not free her of the debt. You may file a chapter 7, but your spouse could not strip the junior lien in a chapter 13 because you are both on the second mortgage. This may be complicated enough to justify seeking advice from an attorney who specializes in bankruptcy law.
Answered on May 24th, 2011 at 1:41 PM
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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You do indeed have some options to deal with the house and your debt. However, you filing bankruptcy alone will not necessarily free her from joint debt unless you propose to pay 100% of the debt through a Chapter 13 plan. As far as stripping the second mortgage, this can also be accomplished in a Chapter 13 case as long as the balance on the first mortgage is higher than the value of the property. But keep in mind that the second mortgage is not stripped until the end of the case and after the provisions of the plan have been fully performed. I would suggest an in-depth consultation with a qualified bankruptcy attorney.
Answered on May 24th, 2011 at 1:32 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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The short answer to your question is yes - one of you can file Chapter 13 and the other 7 and strip the 2nd in the 13. There is also protection for a spouse against collecting for community debt. I would need to have a complete interview with you, however.
Answered on May 24th, 2011 at 1:28 PM
Bankruptcy Attorney serving Atlanta, GA
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Saedi Law Group, LLC
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If your wife wishes to retain the property and you do not you can file a Chapter 7 to wipe out your obligation on the debt. Your wife in turn can file a Chapter 13 bankruptcy and if "lien stripping" is a common practice in her district you she can apply for a lien strip. If you and your wife are co-signers on any debt you can discharge your liability but her liability will remain. If she files a Chapter 13 case those creditors can seek the ensure balance from her. Of course if she is in a 0% repayment plan to unsecured debt that really is not an issue.
Answered on May 24th, 2011 at 11:58 AM