Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Thank you for the information.
Now back to your initial post:
At the time I purchased my home. I was the wage earner with the credit. My wife was a stay at home mom with no income. I want to know what the liabilities are for my wife in the event of foreclosure or a separate personal bankruptcy by myself not including my spouse. (this has already taken place). Will she receive a 1099 for a deficiency judgement or be liable in any way?
Response 1: She may receive a 1099-C if the lender decides to forgive the deficiency after foreclosure. Otherwise, she would not receive the 1099-C and she would still be liable for the debt since she has not sought bankruptcy protection.
Can this be removed from her credit report?
Response 2: No, it cannot be removed since her name is XXXXX XXXXX mortgage and she is liable for the mortgage and the foreclosure would thus be properly reported on her credit records. You cannot remove something that has been properly reported..
Why is she not filing for bankruptcy protection?