What does it mean if my wife files for chapter 11 when we already filed for chapter 7? 7 Answers as of January 26, 2012

Chapter 11 is usually meant for large businesses, but can be used by individuals if they have too much debt and cannot qualify for a chapter 13 and they restructure the debt into a payment plan. If the mortgage was charged off, it does not mean that you don't have a mortgage on your house, the lender charged the debt(note) off their books and it will usually be sold to a debt collector. The mortgage still secures the lien on the property unless it has been stripped in bankruptcy.

If you had seen a lawyer when she filed (and you needed to and should have), the first thing you would have found is that individuals CAN file Chapter 11. No business is required. It's usually not done, but sometimes it is appropriate. Instead of asking "what did she hide" ask why you failed to have it looked at while it was going on to see how and if it affected you. That was your misstep. Have a lawyer look it over now to advise you.

Something does not sound right that she would file Chapter 11 which is for a business.

If she filed a chapter 11 instead of a 13 or 7, that means two things: her debt limit is over jurisdictional limit for a chapter 13, and her income is too high to remain in a chapter 7.

I sure hope you have a lawyer involved! Find out from them why she was converted to a Ch 11. It is not just a business reorganization, it can be if your debt level is too high to file a Ch 13, and your income level is too high to file a Ch 7. All documents filed (with a few exceptions) are public documents. At some point the Ch 7 between you must have been severed, and you stayed in the 7 and she changed to a Ch 11. I don't do Ch 11's, but find it difficult to believe that you should not have been notified. It may be that she knows of something that would also make you ineligible for a Ch 7 if you were married at the time of filing.

Well this means she filed for bankruptcy. I don't know why she did so that is something you need to discuss with her as to the purpose of the chapter 11. The fact that she filed the bankruptcy does not mean you own the house free and clear.

I'd need to see the Chapter 11. It hard to believe she did that without a lawyer. You need to see a lawyer so they can look the case up on PACER. Second mortgaes can be striped off under certain circumstances. Without seeing the file on PACER I have no idea what happened. y.com*