QUESTION
Can my spouse file for bankruptcy to stop a foreclosure if he is not on the loan?
Asked on Mar 09th, 2011 on Bankruptcy - California
More details to this question:
we need to stop a foreclosure on our house, it is only in my name. Can my husband file for bankruptcy alone to stop it since he has interest in the property by living here?
6 ANSWERS
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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There are two avenues you may want to pursue: 1. Defend the foreclosure and attempt a loan modification in the context of court-ordered mediation or 2. File Chapter 13 bankruptcy yourself and, in the meantime, work with a HUD-certified agency on a workout.
Answered on Mar 22nd, 2011 at 10:54 AM
If you want to stop a foreclosure by filing bankruptcy, you need to have an interest in the property. Being on title is best. Being a trust deed holder may work. Living in the property is NOT enough. For specific advice and help, call me.
Answered on Mar 11th, 2011 at 1:51 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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Not sure why you cannot file yourself which would probably make more sense. However, if the house is community property he can so state in the petition for bankruptcy if true. That means he has a 50% interest in the property which will go into the bankruptcy estate and be subject to the automatic stay. Just the fact that he lives there is not sufficient. He must have an interest in the property as an owner. You must have a lawyer to review the situation. This is too important to be relying on questions here or anywhere else by a lawyer who is not your own lawyer and who does not have all the facts and other information required to answer your questions reliably. Again, I would say that the automatic stay should apply but see a lawyer to give you specific advice and to look at your entire situation and not just using bankruptcy to stop the sale. There is a lot you and your husband need to know about the benefits and risks of bankruptcy before either one of you file anything. If he files a Chapter 7 case he will not be able to dismiss the case without court approval and approval may not be given if you have assets that the trustee can take or if it will prejudice a creditor that objects to the dismissal. Be careful.
Answered on Mar 11th, 2011 at 11:43 AM
Short answer: no - he must have a legal interest in the foreclosing note.
Answered on Mar 11th, 2011 at 10:15 AM
Alternative Dispute Resolution Attorney serving Ventura, CA
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Zahn Law Office
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No. A person can only discharge a debt that they are personally responsible for and your husband is not responsible for that debt. The second issue is that a bankruptcy filing will only delay the foreclosure unless you bring the loan to current status (a loan modification and reduced payments may be possible through a chapter 13, however). Your husband's living in the property does not give him any interest in the property.
Answered on Mar 11th, 2011 at 10:11 AM
judith runyon
No, your spouse cannot stop the foreclosure if not on the loan.
Answered on Mar 10th, 2011 at 4:13 PM