I’m in a Chapter 13 Bankruptcy, Getting Divorced and Trying to Lose My House. – Steve

“Dear Steve,

Filed Chapter 13 only under my name but wife signed agreement to help pay the 13 off. House is now in foreclosure and I want to save my house and I just filed for divorce.

She filed Chapter 7 five years ago. My lawyer claims that my Chapter 13 will protect me against the mortgage lenders but my wife could be sued by the second mortgage lender. She wants the house to go into foreclosure so she can live there for free until we are evicted. I told her that she could be sued and I would like her to move and so I could save the house and let her walk away debt free.

In this situation my lawyer said that the only way to save the house is to modify the 13 but the house has to be out of foreclosure. He claims if she stays with the foreclosure I will continue the pay on the 13 and she will be sued for the second on the house since she cannot apply for bankruptcy again. Is this all true?

Steve”

The Answer:

 

Dear Steve,

Sounds correct to me. Bottom line is she either gets in the 13 now or deals with the debt after the foreclosure when they will be chasing her.

I can’t see any reason why she could not do a Chapter 13 herself for that debt when she is slammed with it latter. But the good news is you’ll be in the clear since you already dealt with it.

I think the best scenario in this case is for you to work with your attorney to protect you. If she does not want to participate then that’s her deal. She seems to have made a choice of free rent now and let it fall in her lap latter.

Big Hug!

Im in a Chapter 13 Bankruptcy, Getting Divorced and Trying to Lose My House. Steve divorce chapter 13 ask the get out of debt expert
@GetOutOfDebtGuy

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  • Steve

    Steve,

    I’m back with another question. Just converted the Chapter 13 to Chapter 7 because of the divorce. It will be discharged based on my income. I was not able to keep the house and I owe taxes for 2009 because i could not write off for the house for the whole year. Nothing from the feds or state to file a 1099. Doesn’t the Chapter 7 wipe the chance of a 1099 filing and do I still have to pay taxes for 2009. I thought the Chapter 7 would protect me from all that mess.

    Thanks,

    Steve

    • http://GetOutOfDebt.org Steve Rhode

      Steve,

      Awesome name by the way.

      I can’t see a current bankruptcy would wipe out current tax obligations. Please check with your bankruptcy attorney though.

      Steve

  • Steve J

    Could I sue her for half of the Chapter 13 even though I filed under my name. My divorce attorney told me to leave the house because she could claim domestic violence against me even though I have done nothing. I’m torn because I would like to keep the house and let her go debt free. But when it comes to the house I may be wasting my time. By your experience what is the best course of action when it comes to woman just willing to throw caution to the wind. It’s hard enough just to stay in the house because I am beginning to get ill. I’m having anxiety attacks when I think of her.

    Steve J

    • http://GetOutOfDebt.org Steve Rhode

      Steve,

      I’ve seen all sorts of people make what appear to be grossly irrational decisions when it comes to emotional divorce situations. It’s hard to create a path based on mutual cooperation when there is so much emotional baggage stacked up.

      I think the situation has dictated what you need to do for your well being. It sounds like you need to get out, follow the advice of your divorce attorney and bankruptcy attorney. I’m sure you’ve shared the consequences with her and she’ll have to make up her own mind how she wishes to proceed.

      Steve

  • Steve

    Steve,

    Thanks for answering! Is it still possible for her to be put in the Chapter 13 even though she filed Chapter 7 five years ago? I thought you file once every seven to ten years. How much is it a possibility that the bank will come after her?

    Regards,

    Steve J

    • http://GetOutOfDebt.org Steve Rhode

      Steve,

      It is possible. She just can’t go into another Chapter 7 for eight years from the last discharge date. I understand she wants to be stubborn but hopefully she will wake up and realize your plan is the best approach. otherwise, it’s not going to be pretty and the bank will go after her.

      Steve

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