I was divorced August 15th 2011. Prior to the divorce, My ex and I filed Chapter 13 Bankruptcy. After the divorce was final, My ex converted to a chapter 7 bankruptcy. I was unable to do so because of income to debt ratio. I continued paying the 13 trustee for a year and a half. I remarried and have a new son, and shortly after my son was born I converted to a chapter 7.
My Ex was awarded the House in the divorce. The house has a mortgage and a 2nd mortgage. The 2nd Mortgage was listed in My bankruptcy but not hers. But both the mortgage and 2nd mortgage are in both of our names.
Her attorney has now stated that if I convert to chapter 7 that I owe Half of the 2nd Mortgage amount to my ex, and of course they are furious about the chapter 7 on my part, Since the she didnt add it to her bankruptcy, then she would still be responsible for it if I convert it over to a 7 and cease paying on it. However, I cant find anywhere realistically that I am responsible for paying half of this 2nd Mortgage, and If anything, I have been paying for half of her (our Joint) debts through chapter 13 for over 2 years.
My divorce decree states these facts.
It is Ordered:
(2) Neither plaintiff nor defendant is entitled to spousal support
. spousal support if forever banned.
Any lien, encumbrance, or obligation on any property awarded must be assumed and paid by the party receiving it unless otherwise specified in this judgement.
(c) The plaintiff is awarded the house located at (XXXX), and the plaintiff assumes all liens, encumbrances, or obligations, which includes but is not limited to, the mortgage on stated property. Defendant will relinquish any and all claims he may have to this real property.
(5) LIABILITY FOR JOINT DEBTS.
Plaintiff and defendant will remain equally and jointly liable for the debt of their joint bankruptcy.
(8) BAR OF CLAIMS AGAINST THE PARTIES.
The property division of this Judgment fully satisfies all claims that either party may have against the other except for the obligations and reservations contained in it.
So, those sound conflicting. But the 2nd mortgage is part of the house, and it was taken out at the same time as the original mortgage for a down payment and point reduction, from the same mortgage lender.
And, She filed 7 and left me to pay all the remaining debt in my 13. so I am now converting to 7.
she didnt originally list the 2nd mortgage on her bankruptcy and it is in both of our names, so when I convert to 7 she will then be responsible for that 2nd mortgage in the eyes of the creditor.
Again, My question is, isn't she responsible for that 2nd mortgage anyway? according to the divorce decree?
and If her attorney is insisting I pay half of the 2nd mortgage to her, then what is she basing that on, and is there any real grounds for that.
Should I be worried that after my Bankruptcy converts that she will sue me for that half of the 2nd mortgage? or, better said, Am I responsible for the half?