Q: is the property's rent and mortgage included in the Ch. 7 means test?
The sole owner is my ex-wife but the mortgage is under my name, she files on her tax return all rental income and she handles mortgage payments.
Thank you for reaching out to us. Please let me know what is a good number and when to call you so I can set up a free phone consultation with an attorney.
A: This is a curious and interesting issue and it should be discussed fully with your bankruptcy counsel; however, if the ownership is solely hers it is not one of your assets, and in all liklihood your obligation under the mortgage can be discharged because you have no ownership interest.
This may cause some grief for your ex, and she may be forced to refinance the property, but that really is not an issue in your bankruptcy.
Don't proceed on this route without excellent counsel (no factory bankruptcy law firms)
A: Assuming that the Divorce Decree awards the property to your ex, and provides that she will pay the mortgage indebtedness, and, probably, hold you harmless therefrom, you should list the indebtedness in your sworn Schedules if your are a signator on the Mortgage Note (the Divorce court does not have the power to relieve you of that legal obligation to pay).
If she was awarded the property, and a deed was executed to remove you from the title, there should be no need to show the property on your Schedule D.
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