Will my wife's bankruptcy affect the status of the foreclosure complaint? 10 Answers as of February 01, 2012

Too late to remover her effectively. Her bankruptcy will act as a "stay" and stop the foreclosure proceeding until the creditor gets "relief from stay" to proceed. This could work in your favor. I'm assuming there is no equity in the house.

Yes and No. Yes, the foreclosure is stayed by the filing of the bankruptcy by the automatic stay and no, you can't take her name off the deed because of the automatic stay.

The bank might ask for a lift of the automatic stay in your wife's case & proceed with foreclosure. If so, you don't have much time to work something out with them. Typically, a bankruptcy will take negotiations off the tablethe file moves to the bankruptcy division. But not always.

If you and your wife own the property jointly and she files for Bankruptcy, the foreclosure will be stayed. Once she files her case, the stay will be in place until such time that the Court lifts the stay or until such time that her case is dismissed or discharged and closed.

I believe if she is on the loan it will delay the foreclosure process. Once she files you will have a delay of legal proceedings so the bank will need to file to get court consent to continue the foreclosure process.

If she is on your mortgage, she should have listed it and it should have put an automatic stay in place to stop the foreclosure, at least until the mortgage company asked the court to lift the stay. The only way, at least in Michigan, to take her name off the deed, once again assuming she is on the mortgage, is to refinance the house without her being on anything. But you should talk to a Wisconsin attorney, because Wisconsin is a community property state, so the laws are different there than in most of the rest of the country.

If you are a joint debtor on the mortgage in question and your wife files a Chapter 13 bankruptcy, a co-debtor stay is imposed on the lender by reason of her filing pursuant to 11 USC 1301. The Stay can be lifted upon the lender's motion for relief from stay and co-debtor stay, so the halting of the foreclosure is not permanent based upon those factors. Transferring title from one owner to the other does not terminate the lender's security interest in the property, and would probably violate the terms of the mortgage (the "anti-alienation" clause prohibiting transfer of ownership without lender consent).

Once she files bankruptcy, the file will be flagged from the lender and will be removed from the loan modification dept, if you are applying for a loan mod, but will also, stop the foreclosure proceeding until the bankruptcy case is finished or unless the mortgage company files a motion for relief to get out of her bankruptcy. If there is equity in the property, the trustee for her bankruptcy may be able to seize that asset.

It won't affect it. And don't remove her name from the deed, as it would be considered bad faith in her bankruptcy case.

Yes, if she is on the mortgage that is foreclosing the Automatic Stay would temporarily stop the foreclosure.