QUESTION
If a couple are on a mortgage and husband files Chapter 13, is the wife responsible for accrued interest and late fees while he is in bankruptcy?
Asked on Feb 08th, 2017 on Bankruptcy - Oregon
7 ANSWERS
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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A Chapter 13 bankruptcy protects co-signers. So no, you should not suffer.
Answered on Apr 19th, 2017 at 7:51 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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In a Chapter 7, the non filing spouse is liable for all aspects of the mortgage including interest and penalties. In a Chapter 13, the filing spouse can choose how to handle the mortgage, either paying it as part of the plan or surrendering the house and making the non filing spouse liable.
Answered on Apr 17th, 2017 at 8:46 AM
Typically the property, not an individual, is responsible for the costs of a real estate loan. So if the husband does not want to keep the house, he will not be responsible for paying. If the Wife does not want to keep the house, she will not be responsible for paying either. If either party wants to keep the house, they ought to pay, unless the house starts earning an income and can pay for itself. Otherwise, a foreclosure will be my prediction for its future.
Answered on Apr 17th, 2017 at 8:46 AM
Only if she's a cosigner on the date I don't wise.
Answered on Apr 17th, 2017 at 8:46 AM
There should be no accrued interest, charges, or late fees. Speak with the Chapter 13 attorney.
Answered on Apr 17th, 2017 at 8:45 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Yes. if however his plan undertakes to pay the debt in full, Vian he is spouse should not be bothered.
Answered on Apr 17th, 2017 at 8:45 AM
1 Award
If he is keeping the home, then he will pay the interest and late fees through his chapter 13. If he is not keeping the home, then they will foreclose. Usually they can not come after you after the foreclosure for anything.
Answered on Apr 11th, 2017 at 10:24 AM