If I file for bankruptcy will I be cleared from all mortgage debt? 30 Answers as of June 14, 2013

I'm in the process of a divorce and my husband and I own three properties. One of the properties is in my name only and another is in both our names. I need to file bankruptcy because I am three months behind on the home in my name only. My husband wants to say in the home we have jointly but is unable to refinance and he does not want to sell as he is current on the mortage. If I file bankruptcy, will I be cleared from all mortage debt even if my husband defaults on the home later?

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Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
Secured debts survive bk. Contact a local attorney for specifics.
Answer Applies to: Washington
Replied: 7/2/2012
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Yes, if you file you are relieved of the personal liability for the mortgage. If they foreclose latter - they can not come after you.
Answer Applies to: California
Replied: 6/27/2012
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Yes, if you are discharged in a chapter 7, you will no longer be liable for the debt.
Answer Applies to: New York
Replied: 6/26/2012
Jakob-Barnes Law Firm, LLC
Jakob-Barnes Law Firm, LLC | Jennifer Jakob-Barnes
A Chapter 7 bankruptcy will relieve you of your personal liability on the mortgage but does not take your name off the property.
Answer Applies to: Georgia
Replied: 6/26/2012
Norman Linder Hull, P.A. | Norman L. Hull
If you file bankruptcy, you will be discharged from liability on the promissory note (meaning that the bank cannot collect a personal judgment against you); the bank can still foreclose against the property. Consult with a bankruptcy lawyer; he or she can advise you on whether you should file by yourself or with your husband. Even if you both file, you may be able to stay in your home for a considerable time. Avoid petition preparers; they cannot legally give you bankruptcy advice.
Answer Applies to: Florida
Replied: 6/26/2012
    Alvin Lundgren | Alvin Lundgren
    A bankruptcy can remove you from liability on mortgage debt. Because of your situation you should contact an attorney. You may call for a free consultation.
    Answer Applies to: Utah
    Replied: 6/25/2012
    Dan Wilson Bankruptcy
    Dan Wilson Bankruptcy | Dan Wilson
    Yes.
    Answer Applies to: Colorado
    Replied: 6/14/2013
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
    Yes but a good lawyer may help you save your home.
    Answer Applies to: California
    Replied: 6/14/2013
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Yes.
    Answer Applies to: Michigan
    Replied: 6/14/2013
    Attorney At Law | Harry D. Roth
    So long as you have only one mortgage on each property, you have no personal liability for any of the mortgages. Period. Sometimes you can be personally liable for a second mortgage after the first mortgage forecloses. You do not have to file for bankruptcy to achieve this result. You are already "clear" of all of your first mortgages. That said, the loan is still on your credit and if you do not make the payments, the bank can still foreclose on you once your bankruptcy is over. You are clear, but your property is not clear. People pay because they want to keep their property, but it sounds like you are walking away from all of it, which is probably the smartest thing to do. If you have a large amount of unsecured debt (like credit cards or medical bills) or if you have one or more second mortgages that were not obtained at the same time you bought the house, you might want to file for bankruptcy. If you think bankruptcy might help you, and it might, you should talk to a bankruptcy lawyer. Your case does not sound like a do-it-yourself.
    Answer Applies to: California
    Replied: 6/25/2012
    Marc S. Stern
    Marc S. Stern | Marc S. Stern
    Filing a bankruptcy and obtaining a discharge will discharge you from all personal liability for the obligations. The liens will still exist and can be foreclosed. Additionally, if you are divorced and directed to pay these obligations, it may be possible for your spouse to enforce the obligation against you even though the original creditor could not.
    Answer Applies to: Washington
    Replied: 6/25/2012
    Connaghan Newberry Law Firm
    Connaghan Newberry Law Firm | Tara D. Newberry
    If you are eligible for chapter 7, all debts listed that are dischargeable listed in your schedules, you will no longer owe on including any mortgages. It is important that you consult with a bankruptcy attorney before your divorce is finalized, as there are issues related to divorce that could affect your bankruptcy case and vice versa.
    Answer Applies to: Nevada
    Replied: 6/25/2012
    Law Office of Jeffrey Solomon
    Law Office of Jeffrey Solomon | Jeffrey Solomon
    If you file bankruptcy you eliminate all of your debt including the mortgage debt. Be careful as to any agreements you make in a divorce to be responsible or hold harmless your husband for any debt.
    Answer Applies to: Florida
    Replied: 6/25/2012
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    When you file bankruptcy you list all assets and all debts. In a chapter 7 you receive a discharge of all real estate loans. This means you no longer have personal liability on those debts. However, the lender retains their security interest.? If you plan to keep the property you need to pay for it.? If their is a co-borrower the debt is not discharged as to the non-filer.
    Answer Applies to: California
    Replied: 6/25/2012
    The Law Offices of Kristy Qiu
    The Law Offices of Kristy Qiu | Mengjun Qiu
    Through a bankruptcy, you will be able to clear your personal obligation. So yes, you won't have any liability personally in the event of default. A mortgage, however, is a debt secured by a collateral. This means that the moment you stop paying after bankruptcy, the mortgage holder can foreclose on the property and kick you out, they just can't go after you for the defficiency or the remainder of the loan.
    Answer Applies to: Florida
    Replied: 6/25/2012
    Steven Harrell, Attorney at Law | Waymon Steven Harrell
    Any mortgage balance that you do not reaffirm will be discharged in a Chapter 7 case.
    Answer Applies to: Georgia
    Replied: 6/25/2012
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    You will not be personally liable on the debt but if he fails to make the payment it will still affect your credit. The fact that you file a bankruptcy for bankruptcy does not remove the loan from your name. You would still owe the money.
    Answer Applies to: California
    Replied: 6/25/2012
    Weber & Phillips, P.A.
    Weber & Phillips, P.A. | John G. Phillips
    If you file a Chapter 7 and do not reaffirm the mortgage, then it will be discharged and you will not be held responsible. If you file Chapter 13 and surrender then you will be discharged from it at the conclusion of the case and will not be responsible for it. Therefore, bankruptcy can certainly insulate you from your husband's failure to pay if that should happen.
    Answer Applies to: Arkansas
    Replied: 6/25/2012
    William C. Gosnell, Attorney at Law
    William C. Gosnell, Attorney at Law | William C. Gosnell
    Yes.
    Answer Applies to: Tennessee
    Replied: 6/14/2013
    Ross Smith, Attorney at Law
    Ross Smith, Attorney at Law | Charles Ross Smith III
    Yes. A Chapter 7 will discharge all of your debt to the bank. The bank will still have to foreclose or accept a "deed in lieu" from you, in order to get the legal title over to the bank. The foreclosure will proceed only against the house, not you personally.
    Answer Applies to: Ohio
    Replied: 6/25/2012
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    Yes. Your personal liability would be discharged, but the property would remain liable. That is, the banks can foreclose but they would not be able to hold you personally responsible anymore for any deficiency, etc. They are limited to collecting what they can from the foreclosure of the property. The foregoing notwithstanding, your husband should also consult an expert bankruptcy attorney as a proceeding under one of the bankruptcy chapters may offer alternatives he has not considered or know are available.
    Answer Applies to: California
    Replied: 6/25/2012
    Steven Alpers | Steven Alpers
    You can release your interest to your husband if there is no positive value to the house. A bankruptcy trustee would object to doing so if you could get money from your one-half interest in the other house. That will put the issue up to your husband. He will either have to pay you a fair amount for your interest or sell the house to recover your interest. Mortgage debt goes with the house and if you walk away because you are going to lose the house the bank cannot come after you. Sometimes they will even pay you some money to turn the house over to them. I don't know about your need to file bankruptcy otherwise so if it is only the mortgage debt you can avoid bankruptcy by making an agreement with the lender. That would not affect your jointly owned house.
    Answer Applies to: California
    Replied: 6/25/2012
    R. Jason de Groot, P.A
    R. Jason de Groot, P.A | R. Jason de Groot
    Without a complete review of your finacial circumstances, it will be difficult for any attorney to answer this question fully. You should look into whether you will qualify for chapter 7, or whether you will be required to file a chapter 13. Check out the online "means test calculator" first. You may want to wait until after the divorce is final before doing this. You must first get a consultation from an approved consumer credit counselling service, for either chapter, before you file.
    Answer Applies to: Florida
    Replied: 6/25/2012
    Olson Law Firm | Edward M Olson
    The final answer depends on your other assets and your income. However, in general, a bankruptcy would discharge your obligation to pay all the mortgages on the properties you walk away from. If you stay in the house, you must pay the mortgage to keep it out of foreclosure.
    Answer Applies to: Michigan
    Replied: 6/25/2012
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Based on your facts, yes.
    Answer Applies to: California
    Replied: 6/14/2013
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    This is a bit more complex than on its fact. Your obligations as to the homes and the mortgagors could be handled in a Chapter 13, or possibly discharged if you qualify for a Chapter 7. There are issues regarding personal liabilities for debts and obligations in a divorce settlement/judgment which are not dischargeable. You should seek counsel before you take any actions which you will later regret.
    Answer Applies to: Michigan
    Replied: 6/25/2012
    Law Office of Pho Ethan Tran PLLC
    Law Office of Pho Ethan Tran PLLC | Pho Ethan Tran
    Yes. If you choose to file for personal bankruptcy, you can be cleared of the mortgage debt on the house held jointly with your husband.
    Answer Applies to: Texas
    Replied: 6/25/2012
    Law Office of Stephen P. Dempsey
    Law Office of Stephen P. Dempsey | Stephen P. Dempsey
    Yes, you will not be responsible for the mortgage debt.
    Answer Applies to: New Jersey
    Replied: 6/25/2012
    Law Office of D.L. Drain, P.A.
    Law Office of D.L. Drain, P.A. | Diane L. Drain
    This concept is too difficult to discuss by e-mail. I would be happy to discuss it with you on the phone. Please understand that filing for bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
    Answer Applies to: Arizona
    Replied: 6/25/2012
    Moore Taylor Law Firm, P.A.
    Moore Taylor Law Firm, P.A. | Jane Downey
    Many people use bankruptcy as a tool to get out of mortgage debt, giving the homes back to the bank.
    Answer Applies to: South Carolina
    Replied: 6/25/2012
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