QUESTION
If one partner goes bankrupt, will it affect the others credit?
Asked on Nov 10th, 2011 on Bankruptcy - Georgia
More details to this question:
If two people are not married and sign on a mortgage together, if one of them goes bankrupt, does if affect the other one's credit? And can the house be taken away from the other party if the mortgage is current and up to date?
11 ANSWERS
Daniel James Wilson
Yes.
Answered on Jun 02nd, 2013 at 9:50 PM
Family Law Attorney serving McDonough, GA
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South Atlanta Family Law
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No, this person's bankruptcy filing should not affect your credit. If he discharges the mortgage debt then you will be the only one liable for it. As long as the mortgage remains current, the house will not be taken from you.
Answered on Nov 14th, 2011 at 11:46 AM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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It doesn't affect the non filing partner's credit as long as the payments are kept current.
Answered on Nov 11th, 2011 at 2:11 PM
Bankruptcy Chapter 7 Attorney serving Boulder, CO
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Law Office of Paul Stuber
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As long as the mortgage is up to date they cannot take a foreclosure action, or would they want to, against either of you.
Answered on Nov 11th, 2011 at 9:41 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Co-owners of a mortgage are both liable to pay the loan. If one files bankruptcy the other remains liable. Bankruptcy is not part of the non-filer's credit report. As long as the loan continues to be paid, the lender cannot foreclose.
Answered on Nov 11th, 2011 at 1:13 AM
One person's bankruptcy does not affect another person's credit - even if married to each other. As long as the payments are continued and the loan remains in good standing, the bank would not be interested in foreclosure. If the debtor elects to "reaffirm" the debt, the mortgage would survive just as if the bankruptcy never happened.
Answered on Nov 11th, 2011 at 1:12 AM
1 Award
The house cannot be taken away if you are current. A bankruptcy by a co-borrower does impact credit scores but not as much as a personal case.
Answered on Nov 11th, 2011 at 12:27 AM
Bankruptcy Attorney serving Roseville, CA
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Gingery Law Group PC
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If you signed onto a mortgage as co-signors or co-debtors, then you are both responsible for the mortgage. If one of the co-signors files for bankruptcy, then the other co-signor will be held liable for that debt. Depending on the terms of your mortgage and the lender, if you are still current and up-to-date on the mortgage, then the lender may work an arrangement with the non-filing bankruptcy co-signor to maintain the property.
Answered on Nov 10th, 2011 at 11:58 PM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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The house can't be taken away as long as the payments are current. In Minnesota, you can protect your equity in the home up to $360,000.00. Therefore, as long as you don't have more equity than $360,000.00 and the payments are current, your spouse can keep the property. If the spouse who files bankruptcy does not have ownership of the property, then it doesn't even matter how much equity there is. It shouldn't hurt the non-filing spouses credit as long as the mortgage payments are kept current.
Answered on Nov 10th, 2011 at 5:05 PM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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Only if the co-debtor makes late payments or doesn't pay at all. The co-debtor's credit will NOT be affected UNLESS the mortgage becomes delinquent.
Answered on Nov 10th, 2011 at 5:04 PM
Glen Edward Ashman
Yes, it can affect the other's credit. Whether it affects the home itself depends on details you didn't post.
Answered on Nov 10th, 2011 at 4:50 PM