Bankruptcy, Mortgage Default and Timing of Divorce
My question involves bankruptcy in the state of: california
My husband and I filed chapter 7 bankruptcy yesterday. We are also considering strategically defaulting on our home loan and 2nd mortgage. What kind of protection did the bk get us from our mortgage holder? We were not 100% sure that we want to walkaway, but maybe the timing is good if we are going to lose it anyway because we can't make the payments.
At what point in all this does it make sense to proceed with the divorce? :wallbang:
Re: Bankruptcy, Mortgage Default and Timing of Divorce
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didi1
My husband and I filed chapter 7 bankruptcy yesterday. We are also considering strategically defaulting on our home loan and 2nd mortgage.
So long as you do not sign a Reaffirmation Agreement the debt on both mortgages will be discharged. Both liens survive the bk therefore if you do not make the mortgage payments eventually the property will be foreclosed. . . but neither lender can sue you for $$$.
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didi1
At what point in all this does it make sense to proceed with the divorce?
While there is no real need to wait, the best choice is to wait until your Chapter 7 is "closed".
Des.