How does this work???

[parisdreams]

Okay, this is probably a weird question...

I'm not sure how to file. I'm trying to get enough $ together to get ready to pay for a lawyer. So yes, I plan on filing Chapter 13.

Here's the issue...
My partner and I are both on the mortgage. We are both going to file Ch 13 so we can save our house.

Here are my questions:
1.) I'm assuming we file separately? How would that work as far as the house is concerned? Do we both file the house together or just one of us?

2.) Do we pay two separate lawyer fees?

3.) We bought the house in March 2007. We missed payments from Sept to Dec, due to a job loss. We completed a forebearance agreement (paid EVERY payment) but the mortgage company (you'll never guess who!) cancelled our agreement without telling us. We just so happened to call because we couldnt login to our account. We were told "we didnt complete it". (we did). We filed a complaint with the Attorney General's office. Now, that balance that we paid that the mortgage company is trying to get us to pay AGAIN, will that also go on the bankruptcy? Technically, we completed it. Technically, we are not pass due. Unless the attorney general can find a reason why they are right, we are up to date.

4.) My partner does not currently have a job. How will that work?

5.) My partner is in the works of opening up her own business (money is coming from a relative). Will she have to claim that as well? Anyway around this?

Any advice will GREATLY be appreciated!
Thanks everyone!
(and good luck in your cases as well!)

PS- We reside in NC.

[AngelinaCat]

Hi parisdreams: Welcome to the Forum. I don't have answers for all of your questions, but some of the others--particularly those from NC will have more specific information.

1. Filing jointly or seperately, that one I don't know--but since both your names are onthe mortgage, I don't see why not.
2. I would think you would go together and split the cost of the attorney. Just make sure you see three or four before choosing one to go with.
3. This one is an excellent 'test' question for when you interview your prospective attorneys.
4. The job loss could be a problem for a 13. We were trying for a 13 when I lost my FT job. We had no choice but 7 then. I'm working PT and am trying to add more hours and/or locate another FT job.
5. Any money your partner gets will have to be declared as income. Another thread suggested calling a loan from a parent a 'gift' until later after the BK then slowly pay the 'gift' back if she thinks it is 'overly generous'--if you get my drift.

Good luck to you both.

[HHM]

Since you continually use the word "partner" and not spouse, I am going to assume that means there is no marital relationship.

1. That's tricky. And the answer is probably more dependant on who is on the deed, not who is on the mortgage. Co-debtors, after all, get the benefit of the automatic stay in chapter 13 even if the co-debtor does not file. If only one of you is on the deed, then only that person need file. If both are on the deed, it gets more complicated, lets cross that bridge when we get there.

2. Yes, you each have to file individually which will probably mean separate lawyer fees. And technically, you may need different lawyers (but you can probably use the same lawyer if you sign a conflict waiver).

3. If you are otherwise current (at least according to you), Bankruptcy may be a premature option. You have called the AG, which is good, but you should probably get in touch with a consumer advocate attorney. You probably should do a qualified RESPA letter to get a full accounting of you mortgage (google it).

4. If the partner has no job, or other source of income, that person won't qualify for a 13 anyway.

5. Let's not worry about this issue at this point.

[holding on]

I would stress HHM's point # 3. From the info you've given so far it seems bk filing is only to save the house. Are you currently in foreclosure? Have you received legal notices yet saying you are in default? I couldn't logon to my mortgage account after 2 months of being late, and then it took another 4 months before foreclosure notices (this after they had already restructured my mortgage).

If this is the case then filing a bk is definitely premature.