My question involves bankruptcy in the state of: Oregon

My sister in Oregon is considering filing for Chapter 7 bankruptcy due to credit card debt ($40K). She is a independent contractor who works in the web application industry. Needless to say, she can barely pay her rent, utilities, etc. and was served by the sheriff's office two weeks ago with a notice of suit from one of her credit card companies. If she does indeed proceed with her bankruptcy, I will more than likely handle the paperwork for her...I have previously helped a family member with their Chapter 7 filing.

She lives in an apartment; however, she also is a co-owner (mortgage and title) of a house that her ex-husband and current wife live in. The ex-husband is well aware of her desire to file for Chapter 7. My questions are as follows:

- She does not want to reaffirm the debt on the house (she refinanced the house with her ex-husband last year, and regrets it since). If the ex-husband keeps the monthly payments current, as they are now, will the bank (Wells Fargo) seize the house...due to not reaffirming? Or do they just care about the payments being current? I realize if she does not reaffirm, the "lien" on the house still exists.

- Since she is a co-owner (mortgage and title) of the house, what percentage of the house's value should she put down on Form B6A where it asks for CURRENT VALUE
OF DEBTOR’S INTEREST IN PROPERTY, WITHOUT DEDUCTING ANY SECURED CLAIM OR EXEMPTION.

- RE: Form B1...does she have to inform her apartment complex of her bankruptcy filing? She is current on her rent, and has been so for the last four years.

- RE: Individual Debtor’s Statement of Intention. This form asks me if the property will be retained or surrendered; moreover, if the property will be retained it gives the following options:

- Redeem the property
- Reaffirm the property
- Other. Explain (for example, avoid lien using 11 USC §522(f))

- I would assume she will claim the property as exempt. I believe they (her and ex-husband) have roughly $30K in equity in the house.

Thank you for any help!