Legal Question in Bankruptcy in California

Chapter 7 and Home owner

If my name is on the grant deed of our home but not on the note/mtg and I file chapter 7, what will the court do about the home? My Fianc� is on the mortgage and my name is not. There is no equity on the home, we are actually upside down and have a 1st and 2nd. and are deliquent on property taxes.


Asked on 9/30/08, 4:36 pm

2 Answers from Attorneys
Robert Mccoy Law Office Of Robert McCoy

Re: Chapter 7 and Home owner

If you are upside down, the Chapter 7 trustee will not be interested in the home as he is only interested in liquid assets. If you are so far upside down, that the second is totally unsecured, you may want to consider a Chapter 13 so you can strip the second from the house and only have to make payments on the first.

Note that whether you may strip a second from your home depends on the county you live in.

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Answered on 9/30/08, 4:51 pm
Robert Mccoy Law Office Of Robert McCoy

Re: Chapter 7 and Home owner

However, you cannot strip the second off unless your girlfriend who is on the mortgage files a Chapter 13 herself. If you get married before you file, you may file a joint Chapter 13.

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Answered on 9/30/08, 4:53 pm


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