Claiming individual bankruptcy while married with mortgage

[rdrector]

What is the name of your state (only U.S. law)? Maryland. I am currently married and have lost my job do to facing a criminal charge. I have a joint mortgage. Can I claim my own personal bankruptcy(credit cards) without effecting the joint mortgage? If not, how would the mortgage be effected? Can I claim individually for my own accounts in my name while married without effecting the spouse?

 

[bigun]

You must list all of your creditors-including the mortgage holder.
Should your bk be discharged, you will have no obligation to pay the mortgage but, your spouse will still be responsible.

 

[tranquility]

I think the question is far more complex. What if the house has equity? Only if there is no equity do I think the person going BK would be stripped of ownership and the liability transfer to the co-owner. If there is equity, the co-owner may have to buy the BK person our, perhaps by selling the property.

Thinking edit:
Also, wouldn't the person who did not go BK generally have to refinance the mortgage? The bank's position is clearly worse with less people responsible for the loan. Should they not be able to properly be compensated for the risk?

 

[LdiJ]

I think the question is far more complex. What if the house has equity? Only if there is no equity do I think the person going BK would be stripped of ownership and the liability transfer to the co-owner. If there is equity, the co-owner may have to buy the BK person our, perhaps by selling the property.

Thinking edit:
Also, wouldn't the person who did not go BK generally have to refinance the mortgage? The bank's position is clearly worse with less people responsible for the loan. Should they not be able to properly be compensated for the risk?

I really don't know, but I have several clients who have done just that, and the spouse never had to refinance. Also, the laws vary from state to state regarding how much equity you can keep in a BK.

 

[rdrector]

Thank you for the information. As far as equity, it would be very little or break even.