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Ex Spouse Filing for Bankruptcy Have Mortgage together.

Posted on: 24th Oct, 2008 07:19 pm
Hello Great site you have going here.

I have searched the forum and could not find anything specific to my situation. If I overlooked it I am sorry.

My ex wife and I have a mortgage on the house I was given in the divorce settlement. I have been working with the bank to get it refinanced but not done yet.

If she files for bankruptcy she told me her lawyer said that it will not affect me as far as the house goes. She said they will simply come after me to pay for it which I already do, have always done and will continue to do. She also said I would be able to file papers and have her taken off the mortgage and the deed.

Is this information correct if not what should I do. I am active duty military and can get free legal advice which I plan on doing, I was hoping for a quick response on here while I wait for Monday to roll around.

Thanks in advance!!!!
Hi nvcoastie!

Welcome to forums!

If she files the bankruptcy and includes the house within it, then it will definitely affect you as the mortgage is in your name. If you have always paid the mortgage dues and when she is ready to remove her name from the property and the mortgage, you can ask her to sign a quitclaim deed. Once she signs a quitclaim deed, you can refinance the mortgage and transfer the mortgage in your name.

You can go for a legal help and the attorney will be able to tell you how you should proceed with the whole issue.

Feel free to ask if you have further queries.

Sussane
Posted on: 24th Oct, 2008 08:56 pm
How will it affect me exactly? Will I lose the house, bad for my credit?
Posted on: 24th Oct, 2008 09:00 pm
hi nvcoastie!

is your ex-wife filing a chapter 13 or a chapter 7 bankruptcy? has she included this mortgage into that bankruptcy?

if the mortgage is included in the bankruptcy, then it may hamper your credit. if your ex-wife is filing a chapter 13 bankruptcy and decides to include the property in it, then you won't lose the house as you will have pay the mortgage with the help of an easier plan given by the lender. if she files a chapter 7, then depending on the state laws, you may or may not lose the house.

to know more about different types of bankruptcy, you may visit this link:
http://www.mortgagefit.com/bankruptcy/typesof-bankruptcy.html

thanks.
Posted on: 24th Oct, 2008 10:56 pm
She will be filing a chapter 7. She now lives in Nevada and the house is owned in Indiana.
Posted on: 25th Oct, 2008 06:32 am
Just to clear things up a bit.

We have only oned the house for 2 years. The equity in it has got to be pretty low, especially with the market dropping for houses. I read if there is more than 10,000 equity then they may take it. I know there isnt that much equity in it, not anywhere near it.
Posted on: 25th Oct, 2008 06:51 am
Yes....it does affect your credit and will for sometime. No matter what the marital situation is and it doesn't matter what the judge "ordered" you to have..bottom line, lender has legal docs stating both of you will be responsible for the mortgage note regardless. You won't lose the home, but it will get included and your lender will receive notice of the BK proceedings....so get her name off of the home and the only way to do this is to refinance the property in your name only. Also, keep in mind if any judgements are entered against her, it can be attached to the property as well.......if a judgement is already in place prior to a BK, it may get dismissed by the court but it doesn't get dismissed off the books and will remain until paid in full. Don't wait for her, you need to do something on your end
Posted on: 25th Oct, 2008 08:46 am
Hi Guest!

As far as I know, in Indiana you do not have any non-exempt property for the trustee to sell. Thus, I think your house as well as other assets will be included in the bankruptcy. To be safer side, you can consult a bankruptcy attorney.

Thanks.
Posted on: 27th Oct, 2008 04:05 am
My wife and I are separated. I have a foreclosure coming up. Will the mortgage company try to collect the deficiency from her. I live in calif
Posted on: 06th Nov, 2008 05:09 pm
Hi Larry Head!

If your wife's name is on the mortgage, then the lender may definitely try to collect the deficiency from her. If her name is not on the mortgages, then they won't try to collect it from her.

Thanks.
Posted on: 07th Nov, 2008 12:31 am
The judge ordered my ex -wife to pay me 65% of the proceeds from the refin of our house. It is now is her name only since she did the refi before Decree was issued. She has not done so. I got an injuction and her Credit Union will not release funds to me. It in some kind of account that she has to sign to have funds released. Can a bank go against the court? What else can I do? I fear she will move the money again 3rd time since refi.
Posted on: 29th May, 2009 07:28 pm
Hi Samuel,

As far as I know, the banks can't go against the court. If the bank is not issuing the funds to you, show them the court order. It would be better if you could ask your attorney to speak to the bank authorities.

Thanks
Posted on: 31st May, 2009 09:20 pm
NVCoastie failed to mention that the court gave him 6 months to refinance the house, and he failed to do so. He actually had 10 months between the divorce being final and the filing of the bankruptcy. I had also offered to fill out the papers to removed my name and he chose not to follow through.

I filed Chapter 7 because of over $60k in medical bills and figured I would add the mortgage and equity loan in to cover my ass. The trustee saw that the house was his as ordered by the NV divorce court and there were no further proceedings regarding the home in Indiana. His accounts will say "involved in bankruptcy" and once the bankruptcy is discharged he can contact the credit bureaus to verify my name has been removed and the BK stamp is no longer on his credit.
Posted on: 11th Jun, 2009 10:58 pm
can't refinance or sell, here. Ex has two judgements against her so she can't quit claim if she wanted to. I'm not liable for her debt in this state, but the house is. I've been had.
Posted on: 23rd Nov, 2009 12:25 pm
Hi BadKarma!

Welcome to forums!

You've mentioned that you're not liable for the debts. Then I don't think you should worry about refinance. If your name is not on the mortgage, then the lender will not force you to pay off the dues.

Sussane
Posted on: 23rd Nov, 2009 09:18 pm
I was divorced 3 years ago. My ex got the house. I signed a quit claim it to her and she was supposed to refi to take my name off the mortgage. She still hasn't done this. I have less than a year left to pay spousal support. She can not afford the house on her own. If she doesn't sell the house or refi, and can't make the payments, What are my rights? Can she be forced to sell and cover the loss if she can't sell for the balance of the loan? If she refuses to move and cant make the payments, will I be held responsible, even though it was awarded to her in the divorce? If I am still responsible for the payments since she never filed the quit claim or refi, can I force her to move and reclaim the house?
Posted on: 21st Dec, 2009 06:57 pm
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