What happens when a co-owner ofa housefiles for bankruptcy?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What happens when a co-owner ofa housefiles for bankruptcy?
I would like to file for bankruptcy, however, my mother owns a house that currently also lists me as an owner; I am on the mortgage because I use to work in the banking industry and was able to get her a low rate if I included myself on the mortgage as a secondary. I do not own this house, though my name is on all the paperwork. If Iwould file for bankruptcy, what would happen?
Asked on August 18, 2011 New York
Answers:
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 13 years ago | Contributor
If you are on title to the home, you must list it as an asset in your bankruptcy. If you are only on the loans, then you would only list the debts. How this would affect the property depends on which chapter of bankruptcy you file, and how much equity there is in the property, as well as what value in other assets you have and what exemptions you have available under applicable state law.
In a Chapter 7 case, if you are not living in the house, you would not be able to protect very much equity and it is possible the home could be sold by the Trustee. In a Chapter 13, you'd have to provide for payment to your creditors of at least as much as they would get in a Chapter 7 case. It's hard to be more specific without all the facts.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
Follow Me on Twitter: @bklawr
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 13 years ago | Contributor
If you are on title to the home, you must list it as an asset in your bankruptcy. If you are only on the loans, then you would only list the debts. How this would affect the property depends on which chapter of bankruptcy you file, and how much equity there is in the property, as well as what value in other assets you have and what exemptions you have available under applicable state law.
In a Chapter 7 case, if you are not living in the house, you would not be able to protect very much equity and it is possible the home could be sold by the Trustee. In a Chapter 13, you'd have to provide for payment to your creditors of at least as much as they would get in a Chapter 7 case. It's hard to be more specific without all the facts.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
Follow Me on Twitter: @bklawr
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.