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