Ex-husband in Chapter 7 - what can my kids expect?

[exHCh7]

Hi,

My ex-husband (8 years divorced) has filed for Chapter 7 in Minnesota. Here are the details:

1. He is married but new wife is not listed as joint debtor.
2. He purchased his home as a "contract for deed." He pays $1500 per month as interest only on the contract. The balloon payment of $500,000 is due at the end of 2012. He is responsible for $6K in 2010 property taxes due in October which he has not paid.
3. He and his wife are both listed as unemployed on his filing.
4. Their sole source of income listed is $2400 per month social security benefits for his two step-children (ages 16 and 18) from their dead father's social security benefits.
5. He has $54K credit card debt he is seeking to discharge.
6. He has listed that he wishes to re-affirm his "mortgage" (contract for deed)

My question is whether a trustee will approve of reaffirming the home debt of $1500 per month considering it is interest only on a $500,000 balloon owner lender loan for which he has not paid the $6K annual property tax bill.

My concern is whether our joint children who live with him 1/2 of the time will lose their home with him?

Thanks,

[tcreegan]

Hello exHCh7,

Think about it....even if he reaffirms the loan, can he make the 1/2 million ballon payment next year?

The question is not if he is going to lose the house, it is just a question of when.

Tell the kids Dad is going to be moving....

Tom in Colo

[enuffznuff]

I can't imagine a trustee would approve a balloon payment due next year for reaffirmation.

however, i fail to see what that has to do with your kids. If he has to move out of the house, I'm quite certain they'll rent another one, and your kids will spend time with him there, right? It's just a house.