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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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My ex-husband and I jointly own a home. I live in the home

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My ex-husband and I jointly own a home. I live in the home and he pays the mortgage in lieu of child support. The divorce decree states that he will continue to pay until she is emancipated. She just turned 18 and is going to collage. He is talking about declaring bankruptcy and informed me that if he does they will take the house away from me. Is this true or would the bank want to work with me so that I can stay in the house and take over the mortgage?
Hello,

I am the JustAnswer expert that will be helping you today. I am a lawyer with 25 years experience. Although I am not your attorney, I hope that I can give you helpful legal information.

Typically the bankruptcy trustee would attempt to work with you so that you can keep the house.

Here is why.

The job of the bankruptcy trustee is to maximize the assets for the benefit of creditors. If the trustee were to seize the house, he would be required to auction the house for a fast sale. The house would then be sold at a lower price than if properly listed for sale. There would also be costs and fees involved in the auction.

However the trustee could alternately sell you your former husband's 50% equity in the property. This would avoid the costs of sale and maximize the money available for the creditors.

Customer: replied 6 years ago.
Would equity just be the amount of money he has actually paid on the house or would it involve the value of the house?
Your former husband's equity would be equal to 50% of the value above the loan
Ellen and 2 other Bankruptcy Law Specialists are ready to help you

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