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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I filed bankruptcy in Oct. 2009. At that time, my divorce

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I filed bankruptcy in Oct. 2009. At that time, my divorce was final and the divorce terms gave my x-wife the home. She was told to refinance primary mortgage and home equity by June 2010 to get my name off loan by the judge. How does the bankruptcy affect x-wife if she was given house in divorce (mortgage and equity)? Is she responsible for both loans? If the equity loan says account closed on my credit report, does that mean she is still responsible and it is still open loan on her account?

She ended up refinancing the primary mortgage Nov. 2010; but said she could not refinance the equity loan because the home appraisal did not appraise high enough to refinance both at the same time. Is there anyway she may have gotten out of paying off the equity loan because of my bankruptcy? I told her she had another year to refinance home equity to get it out of my name since judge ordered her to do so. She said since I went bankrupt, that it is no longer counting against me and she did not need to refinance. I was under the impression that equity loan is secured loan and even though I went bankrupt, she was responsible for loan as result of divorce and my bankruptcy would not affect her or the loan...she still had to pay it. I was also under the impression that the loan would still count against my debt ratio and is still in my name and all that bankruptcy did was erase my liability as partner on loan. Correct? So if judge told her to get my name off equity loan too, would me filing bankruptcy completely resolve me from name, obligation and debt ratio impact which in fact accomplished the same thing the judge asked her to do?
Hello,

Thank you for your question. I am happy to assist you.

I am a lawyer with 25 years experience. While I am permitted to provide you with legal information, I am prohibited by JustAnswer.com and various state bar associations from giving legal advice, representing you or entering into an attorney-client relationship through this open and nonconfidential forum.

So if judge told her to get my name off equity loan too, would me filing bankruptcy completely resolve me from name, obligation and debt ratio impact which in fact accomplished the same thing the judge asked her to do?

Yes


The chapter 7 bankruptcy would have discharged your personal liability on the mortgage but not the lien on the property. This means if the property were to be foreclosed, the lender could sell the property to satisfy the debt but could not obtain a judgment against you for the unsatisfied portion of the debt. However it also means that your former wife cannot sell the property without paying the mortgage in full

I hope that the information I have supplied helps you.

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Customer: replied 6 years ago.

If the equity loan says account closed on my credit report, does that mean she is still responsible and it is still open loan on her account? She ended up refinancing the primary mortgage Nov. 2010; but said she could not refinance the equity loan because the home appraisal did not appraise high enough to refinance both at the same time. Is there anyway she may have gotten out of paying off the equity loan because of my bankruptcy?

 

Would my name be taken off loan as result of bankruptcy? I don't want my name on a loan with her....Even though it is no longer showing up on my credit report, will it still be included in my debt ratio if I try to buy another home at some point in future when credit score improved?

If the equity loan says account closed on my credit report, does that mean she is still responsible and it is still open loan on her account?

yes

She ended up refinancing the primary mortgage Nov. 2010; but said she could not refinance the equity loan because the home appraisal did not appraise high enough to refinance both at the same time. Is there anyway she may have gotten out of paying off the equity loan because of my bankruptcy?

no

Would my name be taken off loan as result of bankruptcy? I don't want my name on a loan with her....Even though it is no longer showing up on my credit report, will it still be included in my debt ratio if I try to buy another home at some point in future when credit score improved?

it will no longer be included in your debt ratio

Customer: replied 6 years ago.

Sorry for all the questions...just don't won't to let her off the hook of having to refinance to get my name off loan like judge ordered unless it is ok. Trying to understand implication to me.

 

Would my name be taken off loan as result of bankruptcy? If not, is there any liability or future liability to me with name being on loan or if I try to get loan, will this show up since my name is XXXXX XXXXX?

 

Would my name be taken off loan as result of bankruptcy?
You would not be liable for the loan however the lender may not take your name off of their records

If not, is there any liability or future liability to me with name being on loan or if I try to get loan, will this show up since my name is XXXXX XXXXX?

no
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