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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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The ex is filing for bankruptcy. I co-own the property I live

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The ex is filing for bankruptcy. I co-own the property I live in, with him.
My attorney says that the house will be protected by the divorce agreement.
His bankruptcy lawyer doesn't think so and delays filing because he cannot protect the house. Any ideas? solution? feedback? I don't want him to move back in the house but it might be the only solution????

WebLaw :

*Due to rules of your state bar or mine, nothing herein is intended as legal advice, only intended as general information to better help yourself.*

WebLaw :

How much equity is in the house?

Customer:

Almost all paid off - $60K at least in equity.

Customer:

His debt is about the same (he wouldn't tell me)

Customer:

His attorney suggested that I take a home equity loan (because we have too much equity in the house). The bank agreed on the condition that I use the HEL to pay off the mortgage - which would defeat the purpose of taking the loan!

WebLaw :



So sorry to hear of this dilemma. If my answer is not clear to you, please ask me for clarification by using the reply button.

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WebLaw :

As you likely know, your former husband's interest in the property becomes part of his bankruptcy estate. Since there is $60,000 in total equity, this means that $30,000 in equity is available to the trustee. Typically the trustee would offer you the opportunity to purchase that $30,000 equity from the bankruptcy estate. You could do so and then file a claim against your former husband for reimbursement after the bankruptcy has been discharged. Your former husband's liability to you would not typically be discharged by the bankruptcy under Section 523 of the Bankruptcy Code

WebLaw :


Please use the REPLY button if you have any questions concerning my answer. Otherwise please click ACCEPT so that I am paid by the site for answering.

Customer:

That is probably the best answer I got so far! Why haven't they thought of this here??? Thank You.

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