QUESTION
What will happen if our home is included in our bankruptcy?
Asked on Jun 06th, 2011 on Bankruptcy - Georgia
More details to this question:
My boyfriend and I bought a house together and he is now filing chapter 7 bankruptcy. I found out that he included our home in his bankruptcy. How does this affect me? Is he no longer responsible for the debt? Will we lose our home?
9 ANSWERS
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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The issue is whether you and he can still afford it. One must list all debt, but a house, if up to date, can be kept as long as payments are continued. If he can't pay for it, then you're responsible. If you can't afford it, they'll foreclose eventually. In such cases I recommend you stay in the house and save money until you must leave.
Answered on Jun 09th, 2011 at 9:29 AM
Bankruptcy Attorney serving Seattle, WA
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Symmes Law Group, PLLC
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Your BF will no longer be liable for the debt if he files bankruptcy and surrenders the home. If you co-signed for the property you will still be liable for the debt and you can continue to make payments on the home. If you do not make the payments, then the home will foreclose and you will be liable for any remaining debt owed on the home.
Answered on Jun 08th, 2011 at 4:57 PM
Alternative Dispute Resolution Attorney serving Ventura, CA
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Zahn Law Office
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He can be absolved of personal liability but the house remains subject to the liens. If you continue to pay per the mortgage, you should be able to keep your home.
Answered on Jun 08th, 2011 at 4:53 PM
Litigation Attorney serving Portland, OR
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Daniel G. Hoarfrost
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Your boyfriend's bankruptcy does not change your interest in your home unless his half of the equity in the property is worth more than $40,000.The mortgage will continue on the property. Payments on the mortgage must continue to be made.If the mortgage is not paid, the lender will foreclose at some point.
Answered on Jun 08th, 2011 at 3:28 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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As long as the payments are made nothing will change with regard to the house. Secured debt such as a mortgage is not affected by Chapter 7. It is said that the lien (mortgage or deed of trust) rides through Chapter 7. The only problem might be if your boyfriend has more equity in the house than he can exempt (protect) under state law. In that case the trustee could sell the house to recover the part of the equity not exempt in order to pay his creditors. If there is no equity or very little then you do not need to worry about it as long as the payments are current.
Answered on Jun 08th, 2011 at 12:22 PM
If you are on the mortgage and still wish to pay for it, you may keep it as if he never filed bankruptcy (if there isn't any equity that would subject it to liquidation).
Answered on Jun 08th, 2011 at 12:07 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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All property must be listed in bankruptcy, including real estate. Your boyfriend will no longer be personally responsible for the debt, however the lender would retain its security interest. In practical terms this means that in order to keep the house payments must be continued to be paid. If there are other facts than mentioned here you should consult an attorney. The State Bar maintains a list of certified bankruptcy specialists in your area.
Answered on Jun 08th, 2011 at 11:51 AM
If you (or another coborrower or owner) files Chapter 7, you can keep your home if you are current on the mortgage loans and, if there is any equity, the equity must be within your allowable exemptions. Even if you are behind on the mortgage payments, the missed payments can be repaid over time in a Chapter 13 plan and thus you keep the property. As with Chapter 7, the equity must be within your allowable exemptions.
Answered on Jun 08th, 2011 at 10:49 AM
Glen Edward Ashman
Your question operates on a bad premise. When you file, you MUST list all your property and all your debts. Failure to do so can put you in prison for up to 5 years, cost you your home, and prevent a discharge of debts. Whether he will keep or lose a home depends on his income, expenses, how much equity is in the home, and even the lender. Without seeing the petition there is no way to answer whether he will keep or lose the home. If he wants to keep it he has to pay for it.
Answered on Jun 08th, 2011 at 10:47 AM