If I file Chapter 7, will my son also be obligated to file since we are joint owners of the home? 19 Answers as of May 02, 2014

My son and I are joint owners of my home but he has his own residence. I have a line of credit loan using my home as collateral. His name is also on the loan.

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Law Office of Susan G. Taylor
Law Office of Susan G. Taylor | Susan G. Taylor
Yes, to escape liability.
Answer Applies to: Texas
Replied: 5/2/2014
Stephens Gourley & Bywater | David A. Stephens
He will not have to file, but he will still owe the loan if you do not pay it.
Answer Applies to: Nevada
Replied: 4/29/2014
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Unfortunately, if he is also on the loans, yes.
Answer Applies to: Colorado
Replied: 4/28/2014
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
He will remain solely liable for the debt if he does not file a bankruptcy.
Answer Applies to: New York
Replied: 4/28/2014
EDWARD P RUSSELL | EDWARD P RUSSELL
If you file bankruptcy you can use the homestead exemption so that you can keep the equity in your home up to about $22,000 with the federal exemptions, or up to $333,000 if using the Minnesota exemptions.? Your son could not avail himself of these exemptions if he were to file bankruptcy but there is no reason why he should file.? When you file you would only have to account for one-half of the equity in your home.
Answer Applies to: Minnesota
Replied: 4/28/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    He does not have to file. Make SURE you do not have equity above your homestead exemption - or the trustee will want to sell the house.
    Answer Applies to: California
    Replied: 4/25/2014
    R. Steven Chambers PLLC | R. Steven Chambers PLLC
    No but depending on the equity in the home he could be forced to sell. Also, if the line of credit isn't paid the bank can come after him as a co-signer.
    Answer Applies to: Utah
    Replied: 4/25/2014
    Ronald K. Nims LLC | Ronald K. Nims
    Under no circumstances does one person filing bankruptcy ever require a bankruptcy by a second person - even husband and wife. Now a lot of times, it's beneficial for both to file but never required. If both you and he signed on the loan, and you file bankruptcy, then the loan will become his sole obligation.
    Answer Applies to: Ohio
    Replied: 4/25/2014
    Garner Law Office
    Garner Law Office | Daniel Garner
    A secured loan consists of a promissory note and a lien against the property securing it. Your creditor could foreclose on your house AND sue your son for collection on the note, since his name on the loan means he is equally responsible for payment if you default. Therefore, your son could be forced into bankruptcy if he is unable to pay the debt on your property. Practically speaking, however, he could probably settle for any deficiency remaining after your house is sold by the lienholder. If the selling price is high enough, there might not be a deficiency and your son could be unharmed financially. Or he might be able to borrow enough money against his own home to pay the deficiency and you could repay him when you are able. The key question is how much equity you really have in your home.
    Answer Applies to: Oregon
    Replied: 4/25/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    You haven't provided the kind of information needed to answer this question. Are you planning on keeping the real estate? If so, as long as your payments on the mortgage are current, your son won't face any liability problem for this debt. If you are planning on surrendering this real estate, the way you prepare for this event could hurt your son. I hope you will discuss this issue with the attorney you retain to represent you on your bankruptcy.
    Answer Applies to: Nevada
    Replied: 4/25/2014
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Yes he will still be liable on the loan.
    Answer Applies to: Michigan
    Replied: 4/25/2014
    Hicks, Massey & Gardner, LLP
    Hicks, Massey & Gardner, LLP | Robert M. Gardner, Jr.
    If you file a chapter 7 and surrender the home, you will be free of any debt associated with the home. However, either the first or second mortgage holder can go after your son for the debt. While the first mortgage holder will likely just foreclose at the balance of the mortgage and not seek a deficiency, the second would not be paid and would go after him.
    Answer Applies to: Georgia
    Replied: 4/25/2014
    Law Office of Andrew Oostdyk
    Law Office of Andrew Oostdyk | Andrew Oostdyk
    Your son will not be required to file Chapter 7, and cannot join your Chapter 7 case. If you are planning on discharging the debt and/or surrendering the property. Your son may be liable for any deficiencies on the debt.
    Answer Applies to: Texas
    Replied: 4/25/2014
    Danville Law Group | Scott Jordan
    It is too hard to say without more information. Generally, however, no.
    Answer Applies to: California
    Replied: 4/25/2014
    Law Office of Stuart M. Nachbar, P.C.
    Law Office of Stuart M. Nachbar, P.C. | Stuart M. Nachbar
    Yes, he would, as he would be liable for the full amount.
    Answer Applies to: New Jersey
    Replied: 4/25/2014
    Steele, George, Schofield & Ramos, LLP
    Steele, George, Schofield & Ramos, LLP | Alan E. Ramos
    Most likely, no; however, you should see an attorney to review all of the facts of your case to make sure that you are taking the correct action.
    Answer Applies to: California
    Replied: 4/25/2014
    Paul Stuber, Attorney at Law
    Paul Stuber, Attorney at Law | Paul Stuber
    You both are equally responsible for the loan. He will still be on the contract after your bankruptcy.
    Answer Applies to: Colorado
    Replied: 4/25/2014
    Idaho Bankruptcy Law | Paul Ross
    No. Your son will remain liable on the credit loan against the home. But since it is secured, you will have to make payments on it anyway to keep your home.
    Answer Applies to: Idaho
    Replied: 4/25/2014
    Law Offices of Eric W. I. Anglin
    Law Offices of Eric W. I. Anglin | Eric W. I. Anglin
    If you keep the home and reaffirm the debt it should not impact his credit. If you default on the loan and is foreclosed then it will impact him.
    Answer Applies to: Indiana
    Replied: 4/25/2014
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