I Filed Ch. 7 wife did not can we walk away from home

[ray14528]

Hello there, I filed Ch. 7, was discharged in May 2008. Wife did not file, our mortgage was NOT re-affirmed, but house is in both of our names. We have been making the payments on time, but the neighborhood is really going down hill, and want to get out. We get monthly statements, and they always come with both of our names on, but with the For Informational Purposes Only message. If we decide to walk does this affect her in any way?

[justbroke]

Your wife is probably responsible for the debt, unless you're in a Community Property State. Generally speaking, the debt was not discharged as to her personal liability because she didn't file.

[MSbklawyer]

Hello there, I filed Ch. 7, was discharged in May 2008. Wife did not file, our mortgage was NOT re-affirmed, but house is in both of our names. We have been making the payments on time, but the neighborhood is really going down hill, and want to get out. We get monthly statements, and they always come with both of our names on, but with the For Informational Purposes Only message. If we decide to walk does this affect her in any way?

You are in what is called a "ride-through".

There are two instruments that are usually created when you buy a house:

First is the the note. That's the instrument you sign saying that you owe money and that you agree to pay it back at $X per month for X months. If your wife is on the note and you filed Chap. 7 bankruptcy individually, without her, they are free to pursue her on the note since her obligation was not discharged.

Second there is the deed. The deed is the instrument that creates ownership. The deed has nothing to do with the obligation to pay the note. If your wife is on the deed, but not the note, she has no obligation to pay.

Then, as JB said, if you are in a community property state, she may be liable on the note even if she did not sign it.

Check your paperwork. And put in your location on your personal information.

[ray14528]

Thanks for the replies! We are not in a Community Property State. We are in Illinois. I guess the best option we have to get out is to have her file Ch. 7, and Not re-affirm the mortgage. Thanks!!!

[MSbklawyer]

Thanks for the replies! We are not in a Community Property State. We are in Illinois. I guess the best option we have to get out is to have her file Ch. 7, and Not re-affirm the mortgage. Thanks!!!

Is wife on the note? If not, there would be no need for her to file.

[ray14528]

Yes, wife is on the note. (Unfortunately).

[justbroke]

So then... that reads as though she may have liability on the Note.