QUESTION
Should we file bankruptcy or wait until after foreclosure?
Asked on Sep 28th, 2016 on Bankruptcy - Nevada
More details to this question:
My wife and I separated and filing for divorce soon. I cannot afford mortgage and proceedings have started for foreclosure.
8 ANSWERS
1 Award
It typically does not matter which happens first - the foreclosure or bankruptcy. If you are filing a bankruptcy together, that must be done prior to the divorce being final, otherwise, you will need to file (and pay for) two separate bankruptcies.
Answered on Oct 26th, 2016 at 7:29 PM
Bankruptcy Attorney serving Waterford, MI
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Keith M. Nathanson PLLC
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This is difficult to answer without more details and a consultation as there is no one "right" answer.
Answered on Oct 20th, 2016 at 6:44 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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You've got three legal matters going on: Divorce, foreclosure and bankruptcy. As a general rule, I'd recommend doing the divorce first, then the bankruptcy (which would probably take care of the foreclosure) and then the foreclosure (if it's still an issue). However, everyone's situation is unique so you should consult a lawyer who is familiar with both divorce and bankruptcy.
Answered on Oct 20th, 2016 at 6:44 PM
Filing BK right before the foreclosure sale will allow you to remain on the property longer. I would suggest that you meet with a lawyer. There are other pros and cons you need to discuss.
Answered on Oct 20th, 2016 at 6:45 AM
Bankruptcy Chapter 7 Attorney serving Boulder, CO
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Law Office of Paul Stuber
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It is usually better to file while still married. You can file jointly and there is no question that you are both discharged from the debts at the time of the divorce. Then the Divorce does not have to divide the debts and assets that have gone away through the bankruptcy.
Answered on Oct 20th, 2016 at 6:44 AM
If you and your wife are on speaking terms, the least expensive route would be to file for bankruptcy jointly and surrender the house in the bankruptcy. Sometimes the bankruptcy trustee can facilitate a short sale which would be better for your credit score than a foreclosure. If there are serious divorce issues, however, it may be best to do the divorce first before filing for bankruptcy. You can still surrender the house to the lender or try to do a short sale to avoid foreclosure.
Answered on Oct 20th, 2016 at 6:44 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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First things first: you really should retain an experienced bankruptcy lawyer who is well acquainted with divorce. It's almost always worth the investment-and since you have two legal matters which can have some reciprocal effects, it's even more important. The benefit of waiting until the foreclosure is complete is that you can have a considerable period of rent-free living in the real estate. Depending on the form of the mortgage, you can have a redemption period of 6 months (the usual arrangement) or one year. So, assuming the mortgage-lender obtains a judgment today, you would still have at least six months to stay on in the home, and perhaps a month or so longer.
Answered on Oct 20th, 2016 at 6:44 AM
Well if you want to delay the foreclosure so you can live rent free, file bankruptcy now. If you want to stop future obligations for HOA dues and other house related expenses, file after the foreclosure. Either way, retain a bankruptcy attorney now because you may not be eligible for bankruptcy.
Answered on Oct 20th, 2016 at 6:44 AM