Arlington, WA asked in Bankruptcy for Washington

Q: I have a joint mortgage with a family member and they are going to file for ch 7 bankruptcy.

I am the one making payments. Should I be worried . Does this affect my home? could they take it?

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1 Lawyer Answer
W. J. Winterstein Jr.
W. J. Winterstein Jr.
  • Bankruptcy Lawyer
  • Boyertown, PA

A: As against the bankrupt, a mortgage or note provision that the filing of a bankruptcy triggers and acceleration of the debt has been held to be unenforceable by most courts.

And so long as the mortgage debt is being paid as due, most mortgage lenders/servers are happy and would not attempt to accelerate the debt and threaten a foreclosure. Lenders mostly want a "performing asset", i.e., a steady stream of debt payments, and do not want to own your house through foreclosure.

For those reasons, you should be fine if you simply make all payments as they fall due.

You should confirm these points with a practicing bankruptcy attorney in your federal district.

Timothy Denison agrees with this answer

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