Ex filed 13 on a joint Debt

[maci1818]

I know Im still resp. and I will continue to pay it however under his 13 a portion will still be paid by him. Does that mean eventually I will be able to make partial payments or we he continue to pay it as will I and it will eventually be paid off early? its a 15 year HELOC loan.

[boomer2298]

I would like to know the answer to this too as I am going to probibly file 13 and my ex is not. We have joint secured property. Also I will be attempting to cram down a second. Does anyone have experiance in this??

[newbie2]

I know Im still resp. and I will continue to pay it however under his 13 a portion will still be paid by him. Does that mean eventually I will be able to make partial payments or we he continue to pay it as will I and it will eventually be paid off early? its a 15 year HELOC loan.

You're saying a portion will be paid in the plan. Do you mean that your ex is lien stripping the HELOC (2nd mortgage)?

[Flamingo]

With "ex" I am assuming you mean you are both divorced but still have joint property and your ex is including that in a Chapter 13 filing. Do you have any agreements signed as to distribution of property after your divorce? The best thing to do would be to ask the attorney who handled your divorce about this situation. Since your name is still on the property, the bankruptcy will also eventually show on your credit reports even though you did not file.

Depending upon what he is doing with the mortgage it could just still continue to be paid outside of his plan but it still will be considered as being in bankruptcy. I would consult with the attorney who handled your divorce for the best possible advice in both of your situations...if you are both just separated, consult with a domestic relations attorney.

[boomer2298]

Flamingo,

My situation is a little different. My ex and I agreed to walk from the house (take the foreclosure hit), or I could refinance and I would owe her half the equity (there is none) less my principle payments. I am looking at entering 13 to possibly cram down the second to the actual value of the home (it may be strippable, or not its close) and modify the loan. I actually cannot refinance as she has put me in a insolvent position due to alimony, support etc with unsecured debt. I have a fiancé now, and we can swing the payments less the unsecured debt of course. It would appear that the UST and judge can order her stripped from the deeds according to my legal counsel. Her promise to pay doesn’t go away I am told so this makes an interesting situation. The second mortgage company can either play ball and come up with better terms, or I qualify passing the means test and I can just eliminate my promise to pay and pay through on the first. Your thoughts?

[maci1818]

Actually he is not on the actual Mortgage Deed and has no rights to the house. Its is in my name only. He is liable for the Heloc only( he is on the mortgage Deed for that ). Which is the reason he filed to begin with. It was agreed upon in our divorce decree that he would continue to pay. I don't have a divorce Atty. It will never show in my credit report because I intend to continue to pay the entire amount which is due every month.
What is Lien stripping?

[boomer2298]

Not an expert by any means, but unless one of the moderators or someone else steps in I will try and give my explanation as I understand it. It is when your second mortgage is completely underwater. That is if your house market value is less than what you owe on your second ..and below the value of your first. They can then “lien strip, that is convert it to an unsecured creditor and remove it from your property. They can only do this in Chap 13. I am getting clarification as mine is not entirely underwater and it appears that at least in my district (third circuit) there is a precedent ruling (Scarboro I believe) where a second can be “crammed down” . I have asked this question earlier but received no responses from the legal experts here. So, in my case what I am trying to find out is if the trustee will remove my ex form the deeds as she is not paying for any of our property, and cram down the second which is still also in her name. Thoughts anyone?

[maci1818]

Oh then No he is not lien stripping. He just wants to not have to pay the note.

[maci1818]

Well at this time he had me listed as unsecure because he did not realize his name was on the deed until I brought it up at the 341 now he has to redo his schedules and it has to be listed as secured so this will change everything.

[biotechsolution]

A 'cramdown' applies only to investment property and the total amount of the property value has to be paid in full during the plan time. Doesn't work for your principle residence.