How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Terry L. Your Own Question

Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2517
Experience:  Better Business Bur 15yrs bankruptcy experience. Chicago Bar
15345323
Type Your Bankruptcy Law Question Here...
Terry L. is online now
A new question is answered every 9 seconds

Im in the process of a divorce. Foreclosing on the house in

Customer Question

I'm in the process of a divorce. Foreclosing on the house in Illinois. If I file bankruptcy chapter 11 (not 7) before the divorce how will that affect me? Should I file before or after the divorce. After the divorce I will be responsible for an amount of money for the foreclosed home that is way less than what we purchased it for.   Which is best for me, filing before or after the divorce.
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 5 years ago.
HiCustomer
Chapter 11 is normally for businesses, so I assume you are filing for Chapter 13, although my answer is the same either way. In most cases, I recommend that a debtor file bankruptcy before the divorce, that way,the debts are discharged and don't need to be distributed in the case. Preferrably, I recommend both spouses file if there is joint debt. The issue revolves around joint debts. Each party is responsible for the joint debts, regardless of what the other spouse does. So, if you file bankruptcy, (11 or 13) your plan will say what percentage of the debts are paid back. Your plan can choose to pay 100% of the cosigned debts, or just a percentage. Any portion that doesn't get paid is your spouse's responsiblity for those joint debts. Once you throw the divorce into the mix,then the divorce decree will control as well. Whatever your liability is, will remain yours, even when filing bankruptcy. So, if the home was joint, and there is a deficiency balance (often they do not pursue the deficiency in IL) you are responsible for that percentage, even if you discharged it in bankruptcy. Let's say there is a deficiency after you file the bankruptcy, and they go after your ex for the funds. If your divorce decree says you are to pay a percentage, you would still have to, or else your ex can bring you back into divorce court for failure to comply with the divorce order. If you are saving the home thru the chapter 13, then there will be no deficiency if your plan is to cure any arrears. You are still on the hook down the line if you ever default, but the 13 can help bring the loan current again. Talk with your divorce lawyer and have them work with your bankruptcy lawyer so the cases can be drawn up to protect you the best they can with your goals in mind. Good Luck.
Customer: replied 5 years ago.

Can you explain this sentence....

So, if the home was joint, and there is a deficiency balance (often they do not pursue the deficiency in IL) you are responsible for that percentage, even if you discharged it in bankruptcy.

 

What do you mean "Often they do not pursue the deficiency in IL"?

 

Thanks,

Bea

Expert:  Terry L. replied 5 years ago.
When a home forecloses, there is a good chance the court will not allow the lender to collect on a deficiency balance if it sells for less than is owed on the case. You can hire a lawyer to make sure of that in the foreclosure case.
Customer: replied 5 years ago.

Do you have an attorney to recommend in the Pembroke Pines, Florida area?

Or can I hire you?

 

Thanks

Bea

Expert:  Terry L. replied 5 years ago.
Unfortunately I practice in IL. You can look up your local bar association on Google and they can refer you, or you can try the better business bureau as well. Good luck.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2517
Experience: Better Business Bur 15yrs bankruptcy experience. Chicago Bar
Terry L. and other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.

Thank you for the information. I will look for a bankruptcy attorney here in FL before the divorce.

 

Bea

Expert:  Terry L. replied 5 years ago.
I wish you luck.
Thank you.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
< Last | Next >
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
  • http://ww2.justanswer.com/uploads/TL/tleeders/2012-6-13_204815_TSL1.64x64.jpg Terry L.'s Avatar

    Terry L.

    Attorney

    Satisfied Customers:

    2204
    Better Business Bur 15yrs bankruptcy experience. Chicago Bar
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    950
    B.A.; M.B.A.; J.D.
  • http://ww2.justanswer.com/uploads/CO/cortrightlaw/2011-12-5_4117_Kevin.64x64.JPG cortrightlaw's Avatar

    cortrightlaw

    Attorney

    Satisfied Customers:

    490
    Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
  • http://ww2.justanswer.com/uploads/Jay1968/2006-12-03_004423_JoeRossPhoto.jpg JoeLawyer's Avatar

    JoeLawyer

    Attorney

    Satisfied Customers:

    376
    Attorney in the practice of Bankruptcy Law since 1996
  • http://ww2.justanswer.com/uploads/DY/Dylatess/2012-9-11_1968_BHBTemplePhoto.64x64.jpg dylatess's Avatar

    dylatess

    Attorney

    Satisfied Customers:

    370
    35 plus years of experience specializing in bankruptcy law
  • http://ww2.justanswer.com/uploads/US/USLawAnswers/2012-9-20_23143_20090105211638Headshot3b.64x64.jpg Brent Blanchard's Avatar

    Brent Blanchard

    Bankruptcy Attorney

    Satisfied Customers:

    315
    Twelve years experience in all aspects of debtor & creditor BK.