Ex filing bankruptcy 7

[lifetime]

What is the name of your state (only U.S. law)? Florida
My ex is in the process of filing bankruptcy. Over the last 3 1/2 years I've been able to get everything into my name EXCEPT our Home Equity Loan. I still live in the house and I've been the one making payments. Now, however, I'm getting mixed advice. I also just received a letter from the bank saying they've stopped my auto payments as of last month (I didn't even realize bc it's been auto deducted).
I know I'm not protected under his bankruptcy but is this entire debt going to be wiped out? Even the bank told me I have a "choice" if I want to keep paying??
I also asked about a possible refi on the interest rate since when I was taken out it was a joint loan and now I don't even know what to call it
I'm guessing even though I can't just take myself off my bills a bankruptcy can do just that and leave the co signer out of luck?

I know there's the option to sell and I'm looking into that, but I've also been told I might have to pay off the entire loan (I'm not financially able to do that). And again I've been told to stop paying on it until the bankruptcy plays out (but I don't want my credit ruined either).

 

[LdiJ]

What is the name of your state (only U.S. law)? Florida
My ex is in the process of filing bankruptcy. Over the last 3 1/2 years I've been able to get everything into my name EXCEPT our Home Equity Loan. I still live in the house and I've been the one making payments. Now, however, I'm getting mixed advice. I also just received a letter from the bank saying they've stopped my auto payments as of last month (I didn't even realize bc it's been auto deducted).
I know I'm not protected under his bankruptcy but is this entire debt going to be wiped out? Even the bank told me I have a "choice" if I want to keep paying??
I also asked about a possible refi on the interest rate since when I was taken out it was a joint loan and now I don't even know what to call it
I'm guessing even though I can't just take myself off my bills a bankruptcy can do just that and leave the co signer out of luck?

I know there's the option to sell and I'm looking into that, but I've also been told I might have to pay off the entire loan (I'm not financially able to do that). And again I've been told to stop paying on it until the bankruptcy plays out (but I don't want my credit ruined either).

You need to keep paying on it. You are not the one filing bankruptcy and therefore you are still obligated to the loan. You will ruin your credit and possibly lose your home if you do not keep making the payments.

 

[despritfreya]

I am not sure why anyone would suggest that you stop paying your mortgage simply because a co-signer has filed bk. If you fail to keep all mortgages current the lender(s) have the right to foreclose. Whether or not the 2nd would choose to exercise the right based upon the value of the property and what is owed to the 1st is anyone’s guess. Your ex-husband’s bk does not change that fact.

As to auto deduct, the lender probably has a policy that if a borrower files bk, the auto deduct ceases. If the 2nd is through a local bank, pay it at a local branch. If it is not local, use the US Post Office and mail the payment.

Des.

 

[FlyingRon]

I'll try to make it clearer to what good advice the others have told you.

The debt is NOT going to be wiped out.

You are already responsible for 100% of the loan. All the bankruptcy does is make your ex responsible for none of it. Even if you allow the house to be foreclosed upon, they still have recourse against you personally for the deficiency between what they were owed and the foreclosure sales price.

 

[lifetime]

Tha ks

Thanks for the advice. It's nice to get one common answer than the different ones I've gotten.
I'll contact the bank to reset up auto pay - makes sense that's why they were stopped.

 

[LdiJ]

Thanks for the advice. It's nice to get one common answer than the different ones I've gotten.
I'll contact the bank to reset up auto pay - makes sense that's why they were stopped.

They may not be able to do that. You may have to actively pay the bill each month.

 

[lifetime]

thanks

They may not be able to do that. You may have to actively pay the bill each month.[/QUOT

I've emailed and have been trying to call the bank all morning but just keeps me on hold. Very frustrating. In meantime I'll pay online and see how it goes.

 

[latigo]

They may not be able to do that. You may have to actively pay the bill each month.[/QUOT

I've emailed and have been trying to call the bank all morning but just keeps me on hold. Very frustrating. In meantime I'll pay online and see how it goes.

This may or not be pertinent, but is there any existing indebtedness to which you and the ex remain jointly obligated that were assigned to him in the divorce decree?