Divorced with mortgage linked to ex-spouse

[matthewburnell]

I apologize if this question has been asked as I am VERY new to this topic and I don't know a lot about it. Here's my situation...

I am recently divorced and there is joint debt between my former spouse. I also have about $7k in my own credit card debt. The creditors are calling constantly about a joint loan for $18k on a 2nd mortgage that my ex setup without my knowledge (I was told it was a re-finance before I knew not to trust her). My ex refuses to deal with this debt and will file bankruptcy before she has to pay. I personally do not want to file and have a payment plan setup for $100/month for about 15yrs which I'm told can change if my creditors wake up in a bad mood that day.

However, I am learning a little about Chapter 13. If I file, I understand that my $7k credit card debt will be added to my re-payment but what about the mortgage? My vindictive side would love to stick it to her but does my filing Chapter 13 protect her so she's rewarded for being lazy and irresponsible and now I'm stuck trying to get out of it in 5 years? Since I file first, will our joint debt fall to her? So confused.

Thanks in advance.

-MB

[lrprn]

A couple of questions first, MB....Who is living in the house that was refinanced? What does your divorce decree say about who is responsible for paying this joint loan?

The creditors are calling constantly about a joint loan for $18k on a 2nd mortgage that my ex setup without my knowledge (I was told it was a re-finance before I knew not to trust her). My ex refuses to deal with this debt and will file bankruptcy before she has to pay.

I'm sorry that your ex-wife did not tell you the truth, but if your signature is on that loan, then it doesn't matter whether you were fooled or not. That's why reading contracts line by line and thoroughly understanding what you are signing before putting your name on the dotted line is so important. Unless your divorce decree gives the responsibility for this debt solely to your ex-wife, because you signed the loan, you are responsible for paying it as well.

To know whether Ch 13 is even a possibility in your case, you will have to work with an bankruptcy lawyer to complete the Means Test. If you show more than $167/month disposable income, then you could file Ch 13. Are you trying to save your house? (And your $7K cc debt will be added to your Ch 13 payments only if your cc creditors file claims to be paid through your plan.)

Whether you filing first throws this loan repayment onto her depends on what your divorce decree states about the debt. You need to make appointments for free consultations with 3-4 experienced bankruptcy lawyers in your area. You will learn a great deal about the best options in your specific circumstances - it's well worth the time!

[matthewburnell]

Decree Statement

The decree states that I'm not responsible for the debt (though my name is on it). The house was foreclosed and the outstanding debt was for a second mortgage on the house that I thought was re-finance.

I will do what you recommend. Thank you. This has been very helpful.