ExpertLaw.com Forums

Ex-Wife's Bankruptcy and Jointly Owned Home

Printable View

  • 08-02-2012, 09:32 PM
    jwlussow
    Ex-Wife's Bankruptcy and Jointly Owned Home
    My question involves bankruptcy in the state of: Illinois

    My ex-wife retained our home with the divorce. The 1st & 2nd mortgages are in both names and selling right now would mean we both lose a lot of money. She declared Chapter 7 bankruptcy for her credit card debts. I was not a co-signer or authorized user on any of her cards. She planned on reaffirming the mortgages to keep the house for our kids. I was just informed that the mortgages were not reaffirmed and she is thinking of paying the first mortgage and letting the second mortgage go.

    I believe that makes me, as a joint owner, responsible for the 2nd mortgage payments. I am not sure what my options are but I assume my credit rating has already been ruined, even if she continues to make payments. Can I force her to reaffirm or can I take over all mortgage payments and get the house back? I am feeling pretty helpless right now as not only did I get divorced just a few months ago but now I am going to start getting calls from creditors on payments that the divorce decree states are her responsibility.

    Will my credit rating be destroyed even if she continues to pay on our joint debt since she has already received the letter that the debt has been discharged? Any information would be greatly appreciated. I am even willing to offer to pay the costs for the debt to be reaffirmed if it isn't too late.
  • 08-02-2012, 10:14 PM
    Disagreeable
    Re: Ex-Wife's Bankruptcy and Jointly Owned Home
    If the home went to her, you should have requested for her to refinance at the time your name was removed from the title. If you did not, you have no grounds to charge her with contempt for not paying. They can come after you for payment and if they collect, you will basically have bought her a house.
  • 08-04-2012, 09:52 AM
    Mr. Knowitall
    Re: Ex-Wife's Bankruptcy and Jointly Owned Home
    First, what does your divorce judgment say about the home and mortgages? The question of what you might be able to compel her to do, or reimburse you for via the nondischargeable terms of the property settlement, will be found in the judgment.

    If you want to see what's on your credit report, get a copy. But yes, if you and your ex- are both on the mortgages and she stopped making payments, that will be on your credit reports and will devastate your credit rating.

    If your ex- cannot afford the house, it's something you should be thinking about addressing quickly.
  • 08-04-2012, 11:04 AM
    jwlussow
    Re: Ex-Wife's Bankruptcy and Jointly Owned Home
    The divorce decree gives her the house and the payments. I can force her to sell but the market will mean we will both lose money and my kids won't have a home, which is the most important thing to me. I want them to grow up in a relatively stable environment.

    My ex says she plans on continuing to pay on both mortgages and to date, she has not missed a payment. The plan was once our youngest turns 18 (she is 13 now) or graduates college, we would sell the house. She says her plan was to reaffirm the mortgages and she said the judge asked her what debt she wanted to keep. She just received the letters of discharge in both of our names. According to the 2nd mortgage holder, they are not going to come after me.

    I have worked very hard to create a good credit rating and I guess those days are over. I just want as little damage as possible. Since the mortgage holders will not report the payments to the credit agencies, is the damage already done? Can it lower my rating more if she stops paying on a debt that is already discharged?

    I really appreciate your response. As you can tell, this is a difficult time in my life with lots of questions. Not where I expected to be at 52. Thanks again.
All times are GMT -7. The time now is 01:12 AM.
Powered by vBulletin® Version 4.2.4
Copyright © 2023 vBulletin Solutions, Inc. All rights reserved.
Copyright © 2004 - 2018 ExpertLaw.com, All Rights Reserved