Medford, OR asked in Bankruptcy for Oregon

Q: My partner and I are both on the house mortgage. Will I be able to file for chpt. 7 or 13? will it affect the mortgage

Related Topics:
3 Lawyer Answers
W. J. Winterstein Jr.
W. J. Winterstein Jr.
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Boyertown, PA

A: A bankruptcy filing will certainly affect your mortgage debt, but if you are current in the payments, the mortgage lender may be happy to just continue to receive the monthly payments if you file a Ch. 7. Check your note and mortgage, because it may provide that the filing of a bankruptcy constitutes a default as to your co-debtor, entitling the lender to foreclose. In a Ch 7, the bankruptcy stay only affects/protects you.

If your home is worth more than the mortgage debt, you should be able to exempt the remaining equity value, up to approx. $24,000 using the Federal exemptions. You should check your state law exemptions as well, and ascertain whether you have a choice of which exemptions to claim.

if you file a Ch. 13, there is also a co-debtor stay which should protect your co-owner so long as your Ch. 13 plan deals with your mortgage debt 9 (e.g., a cure of missed payments over the term of your Plan). Your partner's income may also be a factor in determining your 'disposable income' and the amounts you will need to pay into your Plan.

I highly recommend that you put this question to your local Oregon bankruptcy lawyer.

Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: Yes, but there are many other questions to be answered first. Consult your bankruptcy attorney for your case specific list.

Mr. Michael A. Shurtleff
Mr. Michael A. Shurtleff
Answered
  • Bankruptcy Lawyer
  • Salem, OR
  • Licensed in Oregon

A: Hi,

The main question will be how much equity you have in the home. If you own half the equity then a bankruptcy attorney will be able to look at the value of your home and the amount owing against it and figure out how much home equity you personally have.

Many people are able to file chapter 7 even when they own a home and have equity. Just depends on how much equity you have. This is something that you will want to review with one of us (local bankruptcy attorneys) to see if you can file chapter 7. If you are able to file chapter 7, then you have the option to "reaffirm" the home loan meaning that you stay signed up on the loan and keep paying on it and it keeps reporting on-time payments to your credit report, etc.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.