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Divorce & Bankruptcy

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littlerinkydink

Junior Member
What is the name of your state?Tennessee
In 1993 I purchased a mobil home, In 1998 I married, In 2001 we refinanced & put both our names on the note. The house payment is now very far behind & foreclosure is inevitable.
A few months ago I talked to a bankruptcy lawyer. He said that after they auction the house I can file a chapter 7, but because my husband has already filed a chapter 7 the only thing he could do is file a chapter 13.
My husband filed divorce papers in August 2005 and in them it states "that the Wife shall retain sole ownership & possession of said property & the Husband shall convey his interest in said property to the Wife & she shall assume all existing debt on said property & shall hold harmless the Husband from said debt & liability thereon" AND "The Wife shall be responsible for the debt owed on the house"
If I sign the papers as written, What happens when they forclose & I file chapter 7?
 
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LdiJ

Senior Member
littlerinkydink said:
What is the name of your state?Tennessee
In 1993 I purchased a mobil home, In 1998 I married, In 2001 we refinanced & put both our names on the note. The house payment is now very far behind & foreclosure is inevitable.
A few months ago I talked to a bankruptcy lawyer. He said that after they auction the house I can file a chapter 7, but because my husband has already filed a chapter 7 the only thing he could do is file a chapter 13.
My husband filed divorce papers in August 2005 and in them it states "that the Wife shall retain sole ownership & possession of said property & the Husband shall convey his interest in said property to the Wife & she shall assume all existing debt on said property & shall hold harmless the Husband from said debt & liability thereon" AND "The Wife shall be responsible for the debt owed on the house"
If I sign the papers as written, What happens when they forclose & I file chapter 7?
Well...in the first place you absolutely SHOULD NOT sign those papers. The two of you are potentially upside down on the home (actually almost guaranteed to be upside down on the loan) and he should not be able to shuffle all of that debt over to you. In addition, the mortgage company will not be a party to your divorce and can and will go after him for the debt, regardless of what you sign.

The same applies to any other joint creditor...whether its debt that is your responsibility in the divorce or debt that is his. So if you must file bankruptcy then you need to be sure and include ALL debt in the bankruptcy, even debt the divorce gives to him.

If there is any way that you can avoid foreclosure on the home (maybe with family help), then it would be safe to sign that paperwork if you wish to keep the home.
 

littlerinkydink

Junior Member
Divorce and Bankruptcy

LdiJ said:
Well...in the first place you absolutely SHOULD NOT sign those papers. The two of you are potentially upside down on the home (actually almost guaranteed to be upside down on the loan) and he should not be able to shuffle all of that debt over to you. In addition, the mortgage company will not be a party to your divorce and can and will go after him for the debt, regardless of what you sign.

The same applies to any other joint creditor...whether its debt that is your responsibility in the divorce or debt that is his. So if you must file bankruptcy then you need to be sure and include ALL debt in the bankruptcy, even debt the divorce gives to him.

If there is any way that you can avoid foreclosure on the home (maybe with family help), then it would be safe to sign that paperwork if you wish to keep the home.
Yes we are upside down on our home and I have explored all my options as far as the foreclosure goes. I have decided that a chapter 7 is the thing to do. I realize that he shouldn't be allowed to shuffle all debt over to me, but I really just want this all to be over. If I sign the papers then later file a chapter 7(which should then make me debt free) will he or the mortgage company be able to use the divorce papers against me, to make me pay more money?
 

LdiJ

Senior Member
littlerinkydink said:
Yes we are upside down on our home and I have explored all my options as far as the foreclosure goes. I have decided that a chapter 7 is the thing to do. I realize that he shouldn't be allowed to shuffle all debt over to me, but I really just want this all to be over. If I sign the papers then later file a chapter 7(which should then make me debt free) will he or the mortgage company be able to use the divorce papers against me, to make me pay more money?
The mortgage company wouldn't be able to use them against you, but your ex very well could....because the mortgage company could and would legally go after him for the debt.
 

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