What will happen if our home is included in our bankruptcy? 19 Answers as of June 09, 2011

My boyfriend and I bought a house together and he is now filing chapter 7 bankruptcy. I found out that he included our home in his bankruptcy. How does this affect me? Is he no longer responsible for the debt? Will we lose our home?

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
He was required to list the home in the bankruptcy. That will not affect you, especially if there is no equity in the home. He is not required now to make the payments, but if they are not make the lender will foreclose. Worst case scenario you will have to make all of the payments.
Answer Applies to: California
Replied: 6/9/2011
Law Office of Maureen O' Malley
Law Office of Maureen O' Malley | Maureen O'Malley
The issue is whether you and he can still afford it. One must list all debt, but a house, if up to date, can be kept as long as payments are continued. If he can't pay for it, then you're responsible. If you can't afford it, they'll foreclose eventually. In such cases I recommend you stay in the house and save money until you must leave.
Answer Applies to: Virginia
Replied: 6/9/2011
Carballo Law Offices
Carballo Law Offices | Tony E. Carballo
As long as the payments are made nothing will change with regard to the house. Secured debt such as a mortgage is not affected by Chapter 7. It is said that the lien (mortgage or deed of trust) rides through Chapter 7. The only problem might be if your boyfriend has more equity in the house than he can exempt (protect) under state law. In that case the trustee could sell the house to recover the part of the equity not exempt in order to pay his creditors. If there is no equity or very little then you do not need to worry about it as long as the payments are current.
Answer Applies to: California
Replied: 6/8/2011
Bird & VanDyke, Inc.
Bird & VanDyke, Inc. | David VanDyke
You probably won't lose your home as long as you or both of you continue to make the payments. After filing a chapter 7 the court usually has little to say about secured debts such as your home loan. If you don't pay the secured creditor will take it back.
Answer Applies to: California
Replied: 6/8/2011
Daniel Hoarfrost, Attorney at Law
Daniel Hoarfrost, Attorney at Law | Daniel Hoarfrost
Your boyfriend's bankruptcy does not change your interest in your home unless his half of the equity in the property is worth more than $40,000.The mortgage will continue on the property. Payments on the mortgage must continue to be made.If the mortgage is not paid, the lender will foreclose at some point.
Answer Applies to: Oregon
Replied: 6/8/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    If you are on the mortgage and still wish to pay for it, you may keep it as if he never filed bankruptcy (if there isn't any equity that would subject it to liquidation).
    Answer Applies to: Indiana
    Replied: 6/8/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    All property must be listed in bankruptcy, including real estate. Your boyfriend will no longer be personally responsible for the debt, however the lender would retain its security interest. In practical terms this means that in order to keep the house payments must be continued to be paid. If there are other facts than mentioned here you should consult an attorney. The State Bar maintains a list of certified bankruptcy specialists in your area.
    Answer Applies to: California
    Replied: 6/8/2011
    Law Office of Harry L Styron
    Law Office of Harry L Styron | Harry L Styron
    If the house is in joint tenancy then each of you owns the whole thing. If the house is a tenancy in common then each of you owns half of it. If you are able to pay the loan payments, then probably you will be able to keep the house. If you can't then the lender will probably foreclose on the house. If the lender forecloses and is unable to sell the house for the amount of the loan, then if the house was never refinanced they will be unable to seek payment of the deficiency from you. If the house was refinanced, then they will. If there is a deficiency, and they do not seek repayment, then it is possible that the IRS will seek to tax the deficiency as "forgiveness of debt" income if you are not in bankruptcy.
    Answer Applies to: California
    Replied: 6/8/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    He won't be responsible, just you, but as long as somebody keeps up with the payments, you'll keep the house.
    Answer Applies to: California
    Replied: 6/8/2011
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    You will not lose your home if you continue to keep up the mortgage payments. Your boyfriend will not be personally liable for the mortgage on the property unless he chooses to reaffirm the debt. Whether or not he chooses to reaffirm the debt will be a decision he will need to make with his attorney's advice.
    Answer Applies to: New Hampshire
    Replied: 6/8/2011
    Lakelaw - Loop Bankruptcy
    Lakelaw - Loop Bankruptcy | David Leibowitz
    If you are up to date with payments, not much will happen. If you aren't you will soon be facing a foreclosure. He won't be liable for a deficiency. You might be.
    Answer Applies to: Illinois
    Replied: 6/8/2011
    The Northwest Debt Relief Law Firm
    The Northwest Debt Relief Law Firm | Thomas A McAvity
    Provided that he does not reaffirm the debt in bankruptcy, he will no longer be personally liable for the mortgage. While the lender will have no ability to come after him personally, the lender will still have a security interest in the home and can foreclose its interest in the property if you and your boyfriend fall behind on your mortgage obligation.
    Answer Applies to: Oregon
    Replied: 6/8/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Your question operates on a bad premise. When you file, you MUST list all your property and all your debts. Failure to do so can put you in prison for up to 5 years, cost you your home, and prevent a discharge of debts. Whether he will keep or lose a home depends on his income, expenses, how much equity is in the home, and even the lender. Without seeing the petition there is no way to answer whether he will keep or lose the home. If he wants to keep it he has to pay for it.
    Answer Applies to: Georgia
    Replied: 6/8/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    He is required to "include" the home, and any other assets he owns, in his bankruptcy case. How it affects you depends on whether there is equity in the property, whether payments on the mortgage(s) are current, if there is equity whether he has sufficient exemptions to protect that equity under state law and other factors. Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period. The debt is still secured against the property so the bankruptcy does not eliminate the need to continue paying if you want to prevent foreclosure.
    Answer Applies to: California
    Replied: 6/8/2011
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    He can be absolved of personal liability but the house remains subject to the liens. If you continue to pay per the mortgage, you should be able to keep your home.
    Answer Applies to: California
    Replied: 6/8/2011
    Bankruptcy Legal Center
    Bankruptcy Legal Center | Mark Aalam
    If you (or another coborrower or owner) files Chapter 7, you can keep your home if you are current on the mortgage loans and, if there is any equity, the equity must be within your allowable exemptions. Even if you are behind on the mortgage payments, the missed payments can be repaid over time in a Chapter 13 plan and thus you keep the property. As with Chapter 7, the equity must be within your allowable exemptions.
    Answer Applies to: California
    Replied: 6/8/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    Your BF will no longer be liable for the debt if he files bankruptcy and surrenders the home. If you co-signed for the property you will still be liable for the debt and you can continue to make payments on the home. If you do not make the payments, then the home will foreclose and you will be liable for any remaining debt owed on the home.
    Answer Applies to: Washington
    Replied: 6/8/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    He is no longer responsible for the debt; somebody needs to pay it or the mortgage company will foreclose you. If you or he or someone is paying on time, the mortgage company cannot foreclose you. Whether the bankruptcy court will want the house I'd need to know a lot more before I could answer that question.
    Answer Applies to: Virginia
    Replied: 6/8/2011
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