West Monroe, LA asked in Divorce, Foreclosure and Bankruptcy for Louisiana

Q: My home is in foreclosure and up for sheriff sale soon. My ex and I recently divorced with no property settlement and

He lives in the home. We are both listed on the deed to the home but I am on the mortgage alone. If he files chapter 13 bankruptcy and includes the home, would this stop the upcoming sale and foreclosure? If Ch. 13 temporarily stops the sale, what are the steps he should then take to keep the home?

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

A: Yes. Filing chapter 13 will temporarily stop the sale.

1 user found this answer helpful

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
Answered
  • Bankruptcy Lawyer
  • Boyertown, PA

A: When a Ch. 13 case is filed, there is both an immediate automatic stay prohibiting creditors to proceed against the debtor and/or his assets, and importantly, there is also an automatic "co-debtor stay" to prohibit creditor actions against other non-bankrupts who are jointly liable with the debtor on any debt, so long as the debtor's plan "deals with" the creditor's claim.

Surely, your ex's plan would deal with the mortgage claim, as it is upon his residence.

The co-debtor stay, like the automatic stay, lasts for the duration of the Ch. 13 case (unless sooner terminated by the bankruptcy court). Chapter 13 cases can last up to five years.

The holder of the mortgage would be prohibited from commencing or continuing any action to collect on its debt claim, and proof of the Ch. 13 filing should be presented to both the foreclosing mortgage holder and to the sheriff planning to conduct the foreclosure sale.

1 user found this answer helpful

Randy Bryan Ligh
Randy Bryan Ligh
Answered
  • Baton Rouge, LA
  • Licensed in Louisiana

A: This may not be possible but he needs to purchase your interest from you and/or "refinance" the mortgage from your name to him name. Refinance is probably not the correct term in this instance since he is not on the mortgage but I assume that the reason for the foreclosure is that you (or y'all) are behind on the mortgage so it needs to resolved.

1 user found this answer helpful

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.