What's the dif between 7 & 13

[Ziminy]

What is the name of your state?FL

I own a house with another person. Both names on Deed and Mortgage. I have no other assets and make only $584.00 per month on permanent disability. I am $9000.00 in debt. I dont want to lose my house. He is refusing to pay his part of the mortgage and may file for partition to make me sell.


Do I file 7 or 13, what's the difference?

What happens to the mortgage since he is on it?

What happens with the Deed?

Will filing bankruptcy hold off foreclosure?

What happens if he files for partition after the bankruptcy?

What happens if he files before?

[Ladynred]

[quote]Do I file 7 or 13, what's the difference?[/qyote]

Ch 7 all debts are discharged, you don't pay anything. Ch 13, you pay at least some portion of your debt back over a 3-5 year period. You must have an income to fund a Ch 13 plan.

What happens to the mortgage since he is on it?

Depends on who files and whether or not the loan is reaffirmed.

What happens with the Deed?

Nothing. Homesteads are 100% EXEMPT in FL

Will filing bankruptcy hold off foreclosure?

Absolutely.

What happens if he files for partition after the bankruptcy?

This I"m not sure of, but it likely depends on who files what and whether or not the mortgage gets reaffirmed.

What happens if he files before?

Nothing.. homesteads are 100% exempt from siezure in a bankruptcy. If the mortgage goes into default, the bank could ask for a relief from the automatic stay to foreclose.

[Ziminy]

What I guess I'm really wanting to know is....

If I file BK 7, is the whole mortgage discharged, including his portion. So that afterwards he could force me to sell the house and collect his half of the profit?

And then would I be required to pay back all the debtors with my half of the profit?

[Ladynred]

If you file Ch 7, YOUR liability for the mortgage would be discharged IF you don't reaffirm on the mortgage. That would leave ALL of the mortgage in HIS lap - you would be free of it. Your BK wouldn't free him of the mortgage at all. Once a debt is discharged, NO ONE can make you pay back those discharged debts, its illegal to attempt collection on a discharged debt.

[Ziminy]

So, he will owe the mortgage. If he doesnt pay it, can the bank take my house? Since the loan is secured by the house?

Shawn

Uh, you don't get to have it discharged AND keep the house. It's a secured debt, honey. The homestead can't be taken from you if you reaffirm the debt and make a good faith effort of some kind, but you can't just finagle your way into a free house at the expense of both the creditor and the co-owner, if that's what you're after.

[Ziminy]

What I am after is to not lose my house.

What is reaffirming?

The problem is that he has $1000 in this house. I have $11k in down payment and $15k in improvements. $10k of which was charged on credit cards. He's trying to make me lose the house. He doesnt care if his credit is ruined.

Well, let's see. As I recall, if you file BK 13, your interest in the house is protected and you can reaffirm the debt and get a new payment plan for your half of it. That just means that you acknowledge that you owe them and you plan to pay, but within your means.

It's too bad that he's fixing to be ugly. Spite really messes up the legal system. But if you're on a fixed income I think you may actually be one of those people for whom the bankruptcy protections are a legitimate refuge. Don't see much of that, I'm afraid.

You can offer to buy out his interest in the house, but if he won't make a settlement agreement and he wants half the equity, y'all gonna end up in court. What county are you in? And how long you owned this house together?

[Ziminy]

Florida, United States

Owned it for 1 year and 5 months.

I've offered him $2000 in exchange for a quit claim. He wont do it. I think this will end up with one of us filing partition. But I'm afraid I will lose the house to foreclosure before it's partitioned. I dont know how long it takes.

[Ladynred]

Ok. If YOU file and don't reaffirm the mortgage, then YOUR liability for that debt is gone. That does NOT mean you get a free house in this case because the JOINT mortgagee ends up with FULL liability for the mortgage. If he refuses to pay it, then yes, the bank would forclose and the house would be lost.

If Fl, you can't keep secured property w/o reaffirming, but with another party on the mortgage to pick up the responsibility you may not have to reaffirm at all. It sounds like you SHOULD reaffirm it though to keep the house from being lost entirely if he's not going to keep up the payments.

There is no reaffirmation in a Ch 13. In a Ch 13 plan, secured debts are paid at 100% - so the bank will get paid no matter what. You pay the plan for 3-5 years and whatever part of the mortgage isn't paid after that time, you will continue to pay AFTER your plan is completed and all other debts are discharged.

The Ch 13 will let you keep your house as long as you can make the payments and your unsecured debt is probably paid back at a small percentage.

What COUNTY, not country. And how much is your monthly payment? Have y'all been splitting it evenly? Are you elderly? The reason I ask is that in FL, there are certain groups that will offer legal or financial help to SOME people in SOME areas, depending on their age and disability and resources.

[Ziminy]

Pinellas County.

We always pooled our money to pay all bills. He makes 3 times as much as me. We were living as if married. I am 40 and on disability. I am terminally ill.

I cannot afford the house payment on my own. But with a roommate I could. Do not want to give someone a lease when he may come and try to occupy the house again.