Does My Wife Have To File Bankruptcy With Me If We Are Both On the Deed and Mortgage?

21 Jan Does My Wife Have To File Bankruptcy With Me If We Are Both On the Deed and Mortgage?

Even if you and your wife are both on the deed and mortgage it is permissible for only one to file for bankruptcy. This is true even if you are past due on your mortgage payments. If only one of you files a Chapter 13 bankruptcy, you will include the past due mortgage payments in the Chapter 13 plan to be paid by the Chapter 13 Trustee. As long as you continue to make the mortgage payments due after the bankruptcy is filed, no adverse action will be taken.

When a Chapter 13 bankruptcy is filed, an “automatic stay” is put in place. The automatic stay stops all action against you by creditors. A Chapter 13 bankruptcy also creates a “co-debtor stay”, which prohibits creditors from going after your wife for collection of the debt.

Before deciding whether to file a bankruptcy alone, or with your wife, you should contact an experienced, knowledgeable bankruptcy attorney to discuss your options.

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Peter Orville is a bankruptcy lawyer in Binghamton, located in the Southern Tier of New York. He is a member and New York co-chair of the National Association of Consumer Bankruptcy Attorneys.
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