Quit claim deed & Ch 7

[almostfinished]

H signed a quit claim deed to his ex pursuant to the divorce decree. This happened in April of this year (it was a long drawn out mess). His name is still on the mortgage (joint), she refuses to get it refinanced although it does state in the decree that she is responsible. I understand that has no bearing what-so-ever with the mortgage company. Also, I'm wondering what effect this will have on his VA certificate if anything.

Attorney said that it's good that H is remarried so the question of fraud won't come up, there was nothing fradulant anyway, but you never know what the trustee will think.

So, what happens to this mortgage? Will his ex be forced to refi now? Will his name still remain on the mortgage, just not be liable? If it does remain, isn't that allowing the ex to use his (past good) credit to retain the house?

He has listed the ex as a creditor to cover anything that she may come up with based on past conversations with her reguarding things that needed fixed in the house.

TIA!

[lrprn]

Divorce mixed with bankruptcy can be very challenging. Your husband may end up needing both an experienced divorce lawyer and an experienced bankruptcy lawyer to sort out what he's responsible for and what he isn't responsible for. Have you two spoken with any bankruptcy lawyers yet?

[HHM]

Regarding the ex-spouse refusing to sign, that would be contempt of court and your husband can bring the issue before the family court judge. As for the mortgage...does it really matter, if the ex-spouse is living in the house, the debt will ultimately be discharged against your husband and the house, and any possible foreclosure becomes the problem of the EX. There really is no downside for your husband.

[syburr]

Does the debt have to be listed on a schedule?

I'm still on a mortgage after a quit claim deed and divorce. Must my filing list this debt on it for it to be discharged?

[newbie2]

I'm still on a mortgage after a quit claim deed and divorce. Must my filing list this debt on it for it to be discharged?

You must list all debts on your petition. This is still a debt to you.

[helpmeout]

The mortgage company won't be able to come after your husband should his ex stop paying. And since the divorce decree signed off on by the judge states that she is responsible for the debt, he won't be ordered by the family court to pay her to make her whole. This is one instance where him filing bankruptcy will make her completely responsible for what she should be completely responsible for. And it will also make it unnecessary for the ex to refinance to get his name off of the mortgage. The bankruptcy essentially removes the bank's ability to go after him should she stop paying.

[syburr]

On which schedule would the mortgage debt be listed?

Here is the situation:

My exwife got the house via a quit claim deed so I have no equity in it. The divorce decree (January 31, 2005) stated that she had two years to refianace the house or the house shall be listed for sale. It was listed for sale in January of 2010. Their was/is a first and second mortgage on the house.

I ran a credit report and the first thing that is listed on my credit report is the first mortgage.

The second mortgage hasn't ever showed on any credit report that I ran. Perhaps this is because at the time of application we used her credit score with my income to apply for the second mortgage because she had a better score. But thats another story...I was their at the closing of the second mortgage and signed the paperwork.

I gave the attorney of my credit report.

So yesterday I just went to the chapter 7 petition signing at the attorneys office. I reviewed the documents late last night and I'm not seeing either mortgage listed on any schedule.
Which schedule should the first mortgage be listed on?

What about the second mortgage?

Thanks.

[HHM]

The mortgage should be on the schedules.

It would be on schedule D

[syburr]

Should both the 1st & 2nd mortgages be listed?

Hi,

Should both the first and second mortgages be listed on scheule D (creditors holding secured claims?)

I don't have a copy of the second mortgage but like I said it doesn't show up on my credit report. I don't want to have my case closed and then still be on the hook for the second mortgage.

Thanks,

Sy

[HHM]

No harm in listing the second mortgage, although, you should note on the schedules that you are not sure if you are liable for the account. (the BK petition is a sworn document, if you list a debt, you are affirming that you owe the debt).

[syburr]

you are affirming that you owe the debt).

What does that mean "affirming that you owe the debt"?

Thanks,

sy

[HHM]

What does that mean "affirming that you owe the debt"?

Thanks,

sy

Don't over think this...

Based on what you said early, it is questionable whether you are actually responsible (liable) for the 2nd mortgage. Your question is whether you should list it. The answer is yes. All I said is you should not in some manner on your petition that you don't really know if you are responsible for the debt.

In the end, it doesn't matter...if you don't owe the debt in the first place, then you are not responsible for the debt. If you file BK and list the debt, you won't owe the debt.