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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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Hi, I was divorced in 2006 and was awarded the family home

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I was divorced in 2006 and was awarded the family home in the divorce - it was then valued at 550K with a 440K mortgage on it. I was unable to keep the home, however, because it was too expensive to live in, so I listed it to sell and then rented it out to a family who was planning to buy it from me when their credit turned around. They were never able to buy it - and eventually moved out a year ago due to water problems on the property (a dry spring suddenly became active and flooded the basement also causing extensive structural damage). Anyway, I'm trying to sell it on a short sale, but it doesn't look like it will go through. The next step would be foreclosure. There are 2 mortgages on the home - the first with BoA for 260K and a second with chase for $180K. Chase has said that they will pursue the second mortgage for the full amount in foreclosure even though the house has been verfied by BoA structural engineers to only be worth about 220K. I imagine BoA will also pursue the balance of what I owe them. My exhusband is listed on the mortgage with Chase jointly with me but not on the BoA mortgage.
I am obviously considering BK. I recently remarried to a wonderful man and we have a prenuptial agreement that keeps his assets separate from mine. We do not share any assets or income. I work part time because I have two little boys and my income is around 15-20K a year. I have 40K in student loans for my masters degree that I am current on. Would I be able to wipe this mortgage debt away if I filed for BK? I really cannot afford to pay 200K to Chase and BoA. Also, I'm hoping my new husband can be insulated from any of the financial fallout from this - because of our prenuptial agreement. Also, if I do file for BK, should I wait and do that after the foreclosure or do it now before they get a judgment?
I live in Idaho and the house I own is in Utah. Thanks for the guidance with this!


Since you had those mortgages before you were married, they are considered to be "separate" debt, and your husband would be insulated against any liability for those debts, which can be eliminated in a Bankruptcy. You can file the Bankruptcy at any time to effectively eliminate the mortgages - before, during, or after a foreclosure and/or judgment. However, to prevent garnishment (of wages, bank accounts), it is usually a good idea to not wait too long after a judgment to file.

I think this is basically what you wanted to know. If not, please let me know.

Thank you!

Edited by cfortunato on 11/4/2010 at 11:44 PM EST
Customer: replied 6 years ago.
Would I file BK in Utah or Idaho?

Great answer - thanks!

Thanks for the complement!

Where have you lived for the past 2 1/2 years?

Customer: replied 6 years ago.
I have lived in both Idaho and Utah.

I moved from Utah to Idaho in April 2009 and then back to Utah in November 2009. I stayed in Utah until May of 2010 and then moved back to Idaho. I am in Idaho now and have a DL here.

I lived in Utah continuously from Dec 2004 to April 2009.

Sorry for the confusion. You can see why I'm not sure where to file?

Dec 2004 - April 2009 = Utah

April 2009 - Nov 2009 = Idaho

Nov 2009 - May 2010 = Utah

May 2010 - present = Idaho

If the above time line is correct (or close), you would have to file in Idaho, but you would have to use the Utah exemptions, which you can view here:




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