QUESTION
Since her bankruptcy is putting my divorce for almost one year on hold, what can I do so to prevent the bankruptcy from affecting the divorce process?
Asked on Apr 02nd, 2014 on Bankruptcy - Rhode Island
More details to this question:
My wife's and my name are on the deed but the mortgage loan is only in my name. We are going through a nasty divorce and we are behind in our mortgage payment for the last 6 months. The auction was scheduled for 04/01/2013. My wife cannot be approved for a mortgage by herself so she filed for bankruptcy and stopped the house temporary from going on auction sale. I am not filing for bankruptcy. Can she save the house and how?
4 ANSWERS
Depends. Did she file a Chapter 13 showing how she would catch up on the mortgage payments, or did she file a Chapter 7? The Chapter 7 would only delay the foreclosure proceeding for a short period of time. Is there equity in the home? Is it worth saving? Would a better move be to sell the home? If I were you, I would buy an hour or two of some attorney's time to look at the BK filing, and the divorce proceeding. Your question begs more questions.
Answered on Apr 08th, 2014 at 7:02 AM
2 Awards
If your wife filed a chapter 13 she can propose to cure the arrears on the house over time and remain current going forward through a chapter 13 plan. If she filed a chapter 7, there is no way for her to save the home. Rather, it is just a delay tactic to stay in the house longer. She will be discharged of her obligation to pay the mortgage or any deficiency, but she will not be able to keep the house.
Answered on Apr 07th, 2014 at 8:28 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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No, your wife can't save the house through bankruptcy when she's not on the loan. If she was on the loan, she could do a chapter 13 and catch up on the missed mortgage payments over the next 5 years but if she couldn't get a loan in her name before the bankruptcy, the bankruptcy isn't going to magically get her a loan.
Answered on Apr 07th, 2014 at 8:26 AM
Bankruptcy Attorney serving Grand Rapids, MI
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David Andersen & Associates, PC
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Your wife can stop the sale because she has an interest in the property as she is on the deed. She can use a Chapter 13 bankruptcy to catch up the mortgage arrears in a Chapter 13 plan to keep the house and get current.
Answered on Apr 04th, 2014 at 8:18 PM