QUESTION
If my ex-husband files for bankruptcy, will I be responsible for the mortgage?
Asked on Feb 14th, 2013 on Bankruptcy - North Carolina
More details to this question:
i just got divorced last January. My ex stayed in our home but didn't make the payments. Now, it’s in foreclosure. If he files for bankruptcy, does the mortgage company come after me for all the money owed?
14 ANSWERS
Yes, probably because you signed the promissory note, too. I recommend that you contact the lender and negotiate a solution.
Answered on Apr 01st, 2013 at 2:57 AM
William Rhymer
It is possible. The divorce judge did not have the power to take your name off of the mortgage debt. The mortgage company would have the option to come after you.
Answered on Feb 20th, 2013 at 2:08 PM
Complex Litigation Attorney serving Costa Mesa, CA
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Thomas Vogele & Associates, APC
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It depends on how the property is titled and who is on the loan. If the property is lost to foreclosure, you generally have no liability for the deficiency, although there are exceptions. Consult a bankruptcy attorney and give them all the info before taking any action.
Answered on Feb 20th, 2013 at 2:07 PM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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If you're on the note, yes.
Answered on Feb 19th, 2013 at 10:34 PM
When the mortgage is not being paid they mortgage company has two options in California: they can foreclose on the home or they can sue you for the money. If the mortgage company forecloses then they cannot sue you for the money, however your credit score will be lower and your ability to buy another home will be difficult for the next few years.
Answered on Feb 19th, 2013 at 1:10 PM
If you signed the mortgage, the mortgage company can come after you for any deficiency balance. You may want to consult a bankruptcy attorney. Also, if your divorce decree orders your ex to pay for the mortgage, you may want to consult your divorce attorney.
Answered on Feb 19th, 2013 at 1:10 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Yes, you will be liable to the bank, but he might remain liable to you even after the bankruptcy, see an attorney or lose.
Answered on Feb 19th, 2013 at 1:09 PM
In some states, mortgage companies have no right to do anything other than foreclose. But in most states, the mortgage company has the right to sue anyone on the loan for the difference between the foreclosure sale price and the loan balance. In Nevada, the right to sue must be taken within 6 months or the mortgage company loses its right to sue. In 35 years in the legal field, I have only seen mortgage companies sue a few times, and each time the mortgage company did sue to collect the money, the borrower was an investor, not a homeowner.
Answered on Feb 19th, 2013 at 1:09 PM
If you are on the mortgage, it is very likely that they will. If it is community debt, regardless of whether you are on the mortgage or not, it is very likely that they will.
Answered on Feb 19th, 2013 at 1:08 PM
Bankruptcy & Debt Attorney serving Syracuse, NY
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Theodore Lyons Araujo
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Your obligations are unaffected by someone elses bankruptcy, so if you are liable for the mortgage now you will be after his bankruptcy.
Answered on Feb 19th, 2013 at 1:08 PM
Deborah F. Bowinski
If the mortgage loan is in both names then you remain liable to the lender for the dollars owed. If your separation agreement assigned the debt to him then you may have recourse against him if you end up paying. You should speak with your divorce attorney. Most likely the lender will foreclose on the home and what they do next can vary with who the lender is and where you live. They could try to collect a deficiency from you, or they could write it off and issue a 1099 for the remaining balance. If the mortgage loan is in his name only then they cannot come after you.
Answered on Feb 19th, 2013 at 1:08 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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If you are on the Mortgage, then they will look to you, depending on what the Divorce decree states.
Answered on Feb 19th, 2013 at 1:07 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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If you signed the promissory note with the mortgage, yes.
Answered on Feb 19th, 2013 at 1:06 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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The mortgage company will foreclose. You ex dissolved his personal liability by filing bankruptcy. This does mean that if the bank is able to and does in fact seek a deficiency after the foreclosure, they could come after you, although it is unlikely.
Answered on Feb 19th, 2013 at 1:05 PM