Question about Ch. 7

[Wizardree23]

I just called my mortgage company to see if I could work out a payment plan. My wife filed chapter 7 back in October, she was secondary on the loan. Washington Mutual was telling me that they sent in a motion to have the house taken out of the BK. Does anyone know what this means? They were saying that she will still be responsible for the house. I thought under Ch. 7 you are free from most debts, and the house would be one that is included? She has not reaffirmed the laon in anyway, and she included it in the BK. Any advice would be helpful.

[keepmine]

Well, you have to get current on the mortgage or you're going to get foreclosed on.
Just because you filed bk, doen't mean you don't pay the mortgage. If she never reaffirmed, she is not responsible for any deficiency balance.

[Wizardree23]

I understand you have to pay on the mortgage. But, on her credit report they dont have to put " included in BK?"

[Princesskina]

Good response @ keepmine. But me being new and all interpeted as the bank filing a motion to have the house taken out the Chp. 7 (if the bk wasnt discharged yet) so they can STILL be responsible for it.

Again im new so all the education would help while preparing for my own.

[SinkingFast]

I understand you have to pay on the mortgage. But, on her credit report they dont have to put " included in BK?"

I'm no Credit Guru or anything like that, but,........ I think,.............

If you obtained the mortgage jointly and it shows in both Credit Histories, then the mortgage should be listed as IIB on your wife's Credit Reports.

[Wizardree23]

The home loan was in both our names. I thought she shouldnt be on it anymore. The lady told me that BK is a seperate entity and that the home is still her responsiblity. The BK has been discharged back in March. The women told me they are waiting on the court to respond to the motion. I dont have any idea whats going on here.

[Princesskina]

The home loan was in both our names. I thought she shouldnt be on it anymore. The lady told me that BK is a seperate entity and that the home is still her responsiblity. The BK has been discharged back in March. The women told me they are waiting on the court to respond to the motion. I dont have any idea whats going on here.

If the BK is discharged and she didnt reaffirm then she has NO RESPONSIBILITY for the house anymore from what I been reading and now u do BUT from what the loan people are saying they filed a motion and somewhere in that loop there are some missing documents cause I see what there saying and I understand what u are saying but if the BK is discharged and all is done they didn't get there motion they were looking for, BUT check to make sure the house was included in the discharged... But dont take what I say as legal advice since im still new and learning.

Let one of the pro's step in and talk to the talk...

[keepmine]

OK, I'm way confused.
Why do you think she shouldn't be on the loan? Did you refi with just you as the borrower? If so, did she sign a quitclaim deed ? If any of this happened, what timeframe in relation to the bk?

[Wizardree23]

No we did not refi the loan. If she files bankruptcy and the home is included in the bankruptcy, wouldnt she be taken off the loan since she is no longer responsible for it. She is not responsible for the debt any longer, correct?

[Wizardree23]

Her credit report should say "discharged, Ch. 7 bankruptcy," right?

[SinkingFast]

Her credit report should say "discharged, Ch. 7 bankruptcy," right?

That's what I'm thinking Wiz. That's what IIB means. Included In BK.

Are you sure the Mortgage Lender was included in your wife's list of Creditors to be Discharged??

There is something missing here. Your wife's BK is Discharged but not Closed?? Is that right?? And post Discharge, the Lender filed a Motion?? Or was the Motion filed during your Wife's BK?? For what?? What's the Motion for??

You should go to PACER, sign up, and review your wife's docs there to see what's going on with your wife's BK. There's a Sticky up top of the General Discussion section of the Forum about PACER.

[Wizardree23]

The mortgage company said they filed a motion to foreclose back in February of 2006. My wifes BK was discharged in March 2006. The mortgage company said they are waiting for the court to respond to the motion before they can start the foreclosure process. I am confused as well. I disputed the info on my wifes credit report and will wait to see if they come back "included in bankruptcy." They had to be included in the bankruptcy, we were behind on the payments back then. You have to list all creditors, and I am sure they were included.

[SinkingFast]

OK,.............

The Mortgage Lender probably filed a Motion to Lift Stay so they could proceed with Foreclosure. For Foreclosure purposes, your wife's name will still be included on the house. And the Foreclosure, in addition to the BK will be listed on your wife's Credit History.

Why the Lender is still waiting for a response to that Motion, I don't know. When your wife's BK was discharged, she lost protection of the Automatic Stay anyway.

[Wizardree23]

So under the mortgage what is it going to say, included in bankruptcy, or foreclosed?

[Princesskina]

No we did not refi the loan. If she files bankruptcy and the home is included in the bankruptcy, wouldnt she be taken off the loan since she is no longer responsible for it. She is not responsible for the debt any longer, correct?

That a YES no question about it.