Almost 3 years ago I was in a car accident. I have now been served a summons because the other driver is claiming damages in excess of my policy limits. I am waiting for the attorney my insurance company is hiring to contact me. If this goes to court and the other driver is awarded the full amount he is asking for I have read that I can [url=http://www.mortgagefit.com/bankruptcy.html]declare bankruptcy[/url] since there's NO way I could ever pay that amount.
So if I file bankruptcy what happens to the mortgage that I still have with my ex-husband? He lives in the house and pays the bills. I was awarded 60% of the equity in the house when it sells but because of the market we owe about what it is worth. The house is not yet listed for sale but must be by Jan 2010 per our divorce decree.
Also, if the debt becomes his alone, how is this done? Does my name come off of the mortgage and the deed? I ask because I get an employee discount on the interest rate and if my name is no longer on the mortgage the interest rate would increase by a full 1%.
Thank you in advance for any help.