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  1. #1
    Join Date
    Feb 2006
    Location
    COLORADO
    Posts
    3

    Default Chapter 7 Bankruptcy and Collateral

    I JOE RECENTLY FILED CHAPTER 7 UNDER OLD LAW, INCLUDED IS COMMERCIAL PROPERTY WHICH LENDER HAS USED AND ATTACHED OUR PRIMARY RESIDENCE FOR COLLATERAL(CROSS COLLATERALIZATION) MY WIFE DID NOT FILE, OUR HOUSE IS IN HER NAME ONLY AND NOT ON NOTE FOR COMMERCIAL BUILDING.
    QUESTION IS WILL THE 2ND LEIN ON DEED OF TRUST BE RELEASED OR CAN THE LENDER FORECLOSE OR SELL OUR HOME ?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default

    If your wife contractually consented to the house being used by the lender as collateral, the fact that she's the sole owner wouldn't affect the ability of the lender to go after the collateral.

  3. #3
    Join Date
    Feb 2006
    Location
    COLORADO
    Posts
    3

    Default

    SO THE BANKRUPTCY DOES NOT ELIMINATE THE DEBT AND THE LENDER CAN STILL GO AFTER OUR PRIMARY HOME

  4. #4
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default

    Your bankruptcy would have no effect on your wife's obligations.

  5. #5
    Join Date
    Feb 2006
    Location
    COLORADO
    Posts
    3

    Default

    OUR HOUSE MORTGAGE IS IN MY SISTERS NAME SHE IS THE ONE WHO USED OUR HOUSE FOR COLATERAL SHE SIGNED THE DEED TO MY WIFE OVER A YEAR AGO. ME AND MY SISTER ARE ON THE NOTE FOR COMMERCIAL BUILDING WE BOLTH FILED BANKRUPTCY ON THE COMMERCIAL BUILDING AND THEY HAVE THE COLATERAL. EVEN SINCE MY WIFE HOLDS TITLE DEED OF TRUST THEY CAN STILL FORECLOSE

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