second mortgage and ex wife

[lonewolf]

Ok when I was married we had a house and got a second mortgage on it.
We are now divorced and in the settlement I got the house. We are both on the first and second mortgage. She has quit claimed deeded it to me.

I am trying to file for a chapter 7 but my attorney says that the second mortgage (wells fargo) will then go after my ex for the 30,000. My lawyer also said that she could go to court and because the divorce settlement says that I took the house (and it's debt) that I would still have to pay for the second mortgage even if I got it discharged. The court would make me have to pay her so she could pay wells fargo bank.
Is there anyway to get rid of the second mortgage without having to pay the full 30,000?
He did suggest a chapter 13 but I do not want to go thru 5 years of torture and having to send in my taxes, when and if I get bonuses, raises etc.
Can I negotiate with them before filing and see if they will except a percentage instead of me filing bk? and then file once that is clear?

What options do I have??
I live in Florida.

Thanks

[lrprn]

I am trying to file for a chapter 7 but my attorney says that the second mortgage (wells fargo) will then go after my ex for the 30,000.

The problem is that a quit claim deed only applies to the title of the property and not the loan obligation. That's why the second mortgage lenders can go after your wife if you surrender the house in your bankruptcy.

My lawyer also said that she could go to court and because the divorce settlement says that I took the house (and it's debt) that I would still have to pay for the second mortgage even if I got it discharged.

It's possible. Divorce and bankruptcy law don't work very well together in some states because each state has its own bk and divorce case law precedents and actual laws that don't take the other into account.

It would be a good idea for your bankruptcy lawyer, your divorce lawyer, and yourself to meet to discuss what might happen in each of the situations you describe. Bankruptcy lawyers aren't experts in divorce and divorce lawyers aren't expert in bankruptcy. You need both to help you sort out what's could realistically happen in your case.

Is there anyway to get rid of the second mortgage without having to pay the full 30,000?

What is your house currently worth in today's market? If you are willing to go Ch 13, if it's worth less than your first mortgage, then you can strip the second. But you can only do this in Ch 13, not in Ch 7.

He did suggest a chapter 13 but I do not want to go thru 5 years of torture and having to send in my taxes, when and if I get bonuses, raises etc.

First of all, you've got some misconceptions about Ch 13. Please talk with your lawyer again and get a realistic appraisal about what really happens in Ch 13. Frankly unless your raises, bonuses, etc are substantial, you may be able to keep them in a Ch 13. Find out for sure - don't assume - it's very dangerous.

Keep this in mind - it could be five years of getting rid of all your debt or paying off $30,000 of your second mortgage. Look at things in a cold, unemotional way for what's going to give you the best outcome over the long haul without putting too much emphasis on your immediate emotional reaction.

Can I negotiate with them before filing and see if they will except a percentage instead of me filing bk? and then file once that is clear?

By "them", do you mean the trustee? If yes, then no, you can't negotiate before filing. However, if you mean the 2nd mortgage lender, then I would have that serious talk with your bk and divorce lawyer first before doing anything on my own with the lender. You could really muddy up the water without meaning to and find yourself in a worse spot than you are now.