Am I still on my mortgage after filing for chapter 7 bankruptcy? 21 Answers as of July 04, 2013

I was divorced 18 months ago and filed chapter 7 12 months ago. My ex is doing a short sale and the mortgage company said they require my signature because I'm still on the mortgage. Wouldn't the chapter 7 take me off the mortgage?

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Dan Shay Law
Dan Shay Law | Daniel Shay
It is true they may need your signature to release the lien. The Chapter 7 will protect you from any liability.
Answer Applies to: California
Replied: 7/14/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
You are now not personally responsible for the mortgage but the property still secures the mortgage.
Answer Applies to: Washington
Replied: 7/4/2013
Law Office of J. Thomas Black, P.C.
Law Office of J. Thomas Black, P.C. | J. Thomas Black
Yes, so long as you did not sign a Reaffirmation Agreement on the mortgage, your personal liability to pay the mortgage was discharged in the bankruptcy. However you still are on the deed, and unless the divorce decree awarded ownership of the house to your spouse, you still own an interest in the house. It may benefit you to do a short sale, and at least avoid having a foreclosure on your credit.
Answer Applies to: Texas
Replied: 7/11/2011
Law Offices of Michael T. Krueger
Law Offices of Michael T. Krueger | Michael Krueger
You are still on the mortgage until you perform on your intent. If you filed your bankruptcy and stated that you intend to keep current on the mortgage then you are still on the mortgage and are liable for the debt. If you stated that you intend to surrender the property you can bring your bankruptcy case number to the mortgage company and provide them with the evidence they need that you have surrendered your interest back to the bank.
Answer Applies to: California
Replied: 7/11/2011
Law Office of Maureen O' Malley
Law Office of Maureen O' Malley | Maureen O'Malley
Right. You have no liability. If you filed jointly, I don't even recommend a short sale but rather that you just let it go into foreclosure. I'd send a letter to the mortgage company with a copy of your discharge and tell them you're not liable to sign anything. If you do sign, make a clear note that you were discharged and you are signing merely as an accomodation to your ex and that you are not liable for ANY further costs.
Answer Applies to: Virginia
Replied: 7/11/2011
    Law Office of J. Scott Logan, LLC
    Law Office of J. Scott Logan, LLC | John Scott Logan
    No. You still own the property. You are not personally liable for the debt anymore if you listed the mortgage.
    Answer Applies to: Maine
    Replied: 7/8/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    It relieves you of the obligation to pay the mortgage. You are however still "on" it. Make sure what you sign does say impose any further obligations on you, (such an agreement would be void... but who needs the hassle?).
    Answer Applies to: California
    Replied: 7/8/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Chapter 7 does not affect secured debt such as a mortgage. You may not be personally liable for the debt but the lien of the mortgage remains and your name remains on the mortgage contract.
    Answer Applies to: California
    Replied: 7/8/2011
    Law Office of Harry L Styron
    Law Office of Harry L Styron | Harry L Styron
    A Bankruptcy has no effect on a secured debt (mortgage). You remain liable on it. In addition, implied in the short sale is that the property is "under water", so the trustee must have abandoned it in the bankruptcy and you still have an ownership interest in it. Therefore your signature is required for it to be sold.
    Answer Applies to: California
    Replied: 7/8/2011
    The Law Offices of Alan M. Laskin
    The Law Offices of Alan M. Laskin | Jared B. Gaynor
    Bankruptcy discharges do not "get rid" of those debts, they simply remove you from any personal liability for those debts. What they are likely discussing, however, is that you are still on TITLE to the property, and they need your signature in order to complete the title transfer for the sale.
    Answer Applies to: California
    Replied: 7/7/2011
    Law Office of Jackie Robert Geller
    Law Office of Jackie Robert Geller | Jackie Robert Geller
    No. You may have been discharged from personal liability but you are still a signer on the loan.
    Answer Applies to: California
    Replied: 7/4/2013
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    No. You are still on the mortgage. You don't owe any money but you are still on the loan and the deed. Your signature would be required to short sale.
    Answer Applies to: California
    Replied: 7/7/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Hopefully you used a lawyer. If you did your lawyer explained things. If you made the mistake of not having a lawyer that explains your confusion. In a Chapter 7 the mortgage lien survives the case. You simply are no longer liable unless you reassume. Having said that, it would be a horrible mistake for you to sign off on a short sale under those facts. Do not do it. Signing the wrong paperwork in that case is dangerous and a short sales does not help you (unless you reaffirmed). Discuss this with your lawyer. Do NOT discuss this with your ex.
    Answer Applies to: Georgia
    Replied: 7/7/2011
    Law Office of Nanina Takla
    Law Office of Nanina Takla | Nanina Takla
    No the chapter 7 gets rid of your personal liability to pay back the note, but you are still on the mortgage, and, I assume, still on the title to the property.
    Answer Applies to: Oregon
    Replied: 7/7/2011
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