Near Discharge... unsecured creditors can they go after my non-filing spouse?

[ksal]

Hi

I was suppose to be discharged 5/2015 but due to loan mod my balance was reduced. leaving 2nd equity loan to become unsecured debt. I just got letter from Trustee that since my secured debt is paid I am getting discharged? I have a feeling my unsecured creditor (equity loan = 60000) will go after my spouse.

a) House in not under her name and she did not file BK, can unsecured creditors go after her for payments? after my Chp 13 discharge?

[justbroke]

I don't quite understand your HELOC (home equity loan). You are saying that it was unsecured debt? I don't understand how it became unsecured if you pledged your property. Did you do some sort of lien strip? If you stripped the lien and you receive a discharged, that HELOC is discharged as well. The creditor could not come after you, your wife, or foreclose because the debt would be discharged. If you are saying that your HELOC was an unsecured debt (they filed as unsecured), that would be interesting and if it is unsecured, then it too would be discharged should you receive a discharge.

As for your spouse, they cannot pursue your non-filing spouse for two reasons. First, you are in a community property state so your non-filing spouse would receive the "hypothetical" discharge anyhow! Second, your non-filing spouse was never a party to the Promissory Note so never had any obligation to pay.

[ksal]

Hi justbroke thanks for your detailed reply. You have guessed it right. My HELOC went through lien stripping and became unsecured debt since house went underwater 50%. So in conclusion I am happy to hear if case closed than they won't come after my spouse because I feared that scenario. I am scared that they might object to early discharge And trustee might obliged to continue 17 more months. My secured debt is 100% paid. Initially my unsecured debt was assigned to be paid 0% until unsecured got paid 100% . Than trutee filed court notice and increased unsecured % to 33%. Now unsecured creditors got 33%, trustee sent me refund of leftover payment and filed 21 day notice. I wonder I will get discharge or disappointment?

[justbroke]

I believe that you will have your discharge. Call me crazy, but I believe it would be silly for a 3rd position lienholder, the HELOC holder, to complain! Don't forget to post back once your discharge is granted! We'll have a party!

[ksal]

Music to my years. definitely Will post back when I get discharge paperwork. Thanks again. .