Debt and Bankruptcy
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Do both parties on a joint mortgage have to file bankruptcy on a joint mortgage?


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2014-09-17 19:35:58
2014-09-17 19:35:58

No, both parties on a joint mortgage do not need to file bankruptcy. They can file a joint bankruptcy or a single bankruptcy.

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You don't file bankruptcy "on" anything. You file for bankruptcy for all debts, including a mortgage or mortgages. If the other party has been paying the mortgage and has possession of the premises, there may not be a problem for that person. If there is a divorce order requiring the absent party to pay or pay part of the mortgage, there may be a contempt action for violating that court order.

Yes. If joint debts are an issue, it is beneficial for both parties to enter into a BK filing. If not the one who is not a party to the bankruptcy will be liable for those debts.

If you and your former spouse still own the property you can get an equity loan if both parties consent and both sign the note and mortgage.If you and your former spouse still own the property you can get an equity loan if both parties consent and both sign the note and mortgage.If you and your former spouse still own the property you can get an equity loan if both parties consent and both sign the note and mortgage.If you and your former spouse still own the property you can get an equity loan if both parties consent and both sign the note and mortgage.

only if both parties go in together as paperwork has to be signed by both parties as well as ID from both fopr joint acct

Was the bankruptcy before or after the divorce? I don't think it matters however, the bank can always go after the cosigner on a mortgage if they didn't file bankruptcy as well.

Yes. Both parties must sign the documentation when refinancing an existing mortgage. This is to protect both parties from unfair lending practices.

If the mortgage is in both names, or if there is significant joint debt, you are better off filing bankruptcy jointly before the divorce is final. If the mortgage company forgives the balance, it will count as income to you and you will have to pay taxes on it in the following year, unless you file bankruptcy. Or the mortgage company can sue on the deficiency and get a judgment good for 10 or 20 years. Unless you file bankruptcy.

As long as both parties are in agreement, there is no limit to the number of times a mortgage can be renegotiated.

The joint Bk would have to be voluntarily dismissed by both parties and then refiled as a single bankruptcy after the required waiting limit for filing is reached. When married couples reside in CP states it is best that they file a joint BK to allow full protection for both. In non CP states where only one spouse is the debtor the best choice is usually for only the debtor spouse to file.

Both persons if it is applicable. In some cases a married couple will hold a joint mortgage but only the wage earner will have a credit score on record.

If two people owned property, executed a mortgage, and the mortgage is in default, the foreclosure will be filed in both names. It was both mortgagors who defaulted and both will be parties to the foreclosure. If one executes a quitclaim deed to the other that will not stop their being mentioned in the foreclosure.

If they were joint accounts and are discharged, the creditors will come after you, unless your divorce decree makes your ex-spouse solely liable for them.If you are on the hook for them, you may file your own bankruptcy, but you cannot just list those debts. All debts that you owe must be listed in your bankruptcy schedules, or you may find yourself in trouble.Another PerspectiveYou must consult with an attorney who specializes in bankruptcy. A creditor may not be subject to a divorce decree. For example, a mortgage and note signed by both parties cannot be transferred to one party by a divorce decree where the lender is concerned. It owns the debt and if it isn't paid the lender can take possession of the property by foreclosure. Joint debts are a complicated area of law.

Its part of the contract as both parties have an investment (interest) in the property

yes it can, both parties are equally responsible for the account

No, unless you both filed a joint BK petition.

If the account is a joint account (bill comes in both of your names), then yes, it will be reported to both of your credit reports.

The court does not take anything. Is that the one in both names? Was he paying the mortgage or part of the mortgage? I strongly urge you to get your own bankruptcy lawyer, since this is a very technical area of bankruptcy law. You need to find out if he intends to abandon his interest in the homes or intends to reaffirm the mortgage(s). Abandoning the property can cause problems if you cannot pay the mortgage on "your" home in Iowa. The real estate would be foreclosed on if there is a mortgage, unless you can make the payments on a joint mortgage or refinance in your name alone. You can also sell the house owned jointly, though you might need his agreement to sign the transfer documents or file a legal action in Iowa if that was where you were living when the separation took place or if venue lies in Iowa for other reasons. I said it was technical!

Generally a bank will notify both parties of the issue before freezing account. However, if they feel that it is fraud related they do not have to notify either parties before freezing the account.

The driver responsible for the accident is always at fault. However, Both parties are usually found at fault in this instance. This is generally called Joint fault.

This depends on two things. Are the debts joint and do you live in a community property state? If they are his debts alone and you do not live in a community property state you are not responsible. Therefore you do not need to be a part of bankruptcy proceedings. If however they are joint debts and/or you live in a community property state you are equally responsible for the debt(s). And it would be in both of your best interest to file a joint bankruptcy.

Spouse's bankruptcyIt can. Since even a quit-claimed mortgage loan continues to show on your personal credit report, it MAY get a notation "included in bankruptcy" (if it was included). This will cause you problems because creditors will be looking at Your public records trying to justify that notation.Keep track of your credit. Yours is one of the few situations where inserting a consumer statement onto the bureaus would be a good idea.More input from FAQ Farmers:I think it's important to understand that you are talking about two different things: (1) ownership, and (2) liability. Signing a quitclaim deed means you transferred ownership of the property to your ex-spouse, so the deed will only be in your ex-spouse's name, but this in no way transfers your liability on the mortgage document to your ex-spouse. The mortgage lender will still hold you both responsible for the mortgage regardless of whose name is on the deed since both of your names are still on the mortgage document. And, even if the divorce court ordered one spouse to be responsible, in Indiana at least the mortgage lender can normally still sue both spouses if there is a default on the mortgage. I'm only licensed in Indiana, and if you were in Indiana, my guess is that if your ex-spouse filed bankruptcy on the mortgage, the fact that you quitclaimed the house will not stop the mortgage lender from pursuing you for payments. Of course, different things might happen in different states since each state has their own laws on the subject. Please keep in mind that this in no way constitutes legal advice but is just my take on the hypothetical facts.More information:Secured debt, such as a mortgage loan, will not be included in the bankruptcy. If the mortgage loan is still in joint names with your ex-spouse, she will remain liable for the debt, and jointly responsible for its repayment.

Every case is different, but if the two of you file a joint petition for bankruptcy before the divorce, you will both avoid problems. Consult a lawyer who knows both divorce and bankruptcy law.

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