Is my wife liable if she filed chapter 7 on our house and then I obtained loan modification? 9 Answers as of March 15, 2011

My ex wife filed a Chapter 7 Bankruptcy and included the house. She also filed a Quit Claim. Her debts were discharged. I have since moved back in and obtained a loan modification. The mortgage company says her name will remain on the loan and she will be liable to it. So if in the future I stop making my loan mod. payments, will that hurt her credit and will she be liable still?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Rhonda R. Werner Schultz, PL
Rhonda R. Werner Schultz, PL | Rhonda R. Werner Schultz
You need to speak in detail with a skilled bankruptcy attorney about this and the effect of the modification of the loan and whether that created a new obligation for you and your Wife.
Answer Applies to: Wisconsin
Replied: 3/15/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
AS long as she did not sign the modification she is off the hook.
Answer Applies to: California
Replied: 3/14/2011
Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
I can not tell from your question if your wife reaffirmed the debt to the lender on your home or not. If so, she is definitely still liable on the loan. Quitclaiming a property to another does not relieve you of your legal obligation to pay the loan on the property. If that is the case, then yes, your wife's credit will be hurt if she and you stop making the payments on the loan and she will still be liable for payment of the loan.
Answer Applies to: California
Replied: 3/14/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
It will depend on the paperwork. If your wife signed any paperwork to allow the loan modification to go through, she may have incurred liability through that signing. You should bring the paperwork to an attorney for review to determine what liabilities, if any, your wife has. If she has regained her liability and payments are not made, she will be responsible and it will hurt her credit further.
Answer Applies to: New Hampshire
Replied: 3/14/2011
Ferguson & Ferguson
Ferguson & Ferguson | Randy W. Ferguson
She needs to ask her attorney in her bankruptcy. Did she bankrupt the house? If she let the house go back, then no. If she kept it probably yes. She should talk to her attorney who knows all of the facts.
Answer Applies to: Alabama
Replied: 3/14/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Her debt on the mortgage was discharged in her bankruptcy case. If she did not sign the loan modification, then she can't be liable for any deficiency upon default after foreclosure. This may depend in part on state law, so you should run this by a real estate attorney in whatever state the property is located just to be sure.
    Answer Applies to: California
    Replied: 3/14/2011
    Gus Johnson Attorney at Law
    Gus Johnson Attorney at Law | Gus Johnson
    I don't think she would continue to be liable.
    Answer Applies to: South Dakota
    Replied: 3/14/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    If she did not sign to reaffirm the loan, she will not be liable on the loan.
    Answer Applies to: California
    Replied: 3/14/2011
Click to View More Answers: