Legal Question in Bankruptcy in California
Person A files a Chapter 13 Bankruptcy in California, listing a property/morgage jointly held with Person B, who is not married to Person A and who has not filed bankruptcy. The property/mortage is in forclosure. How does Chapter 13 Bankruptcy deal with a property/mortage that is held jointly in this situation? What can Person B do to protect himself from assuming any debt that relates to the commonly held property that is not fairly attributed to him?
Can you provide a web/URL that will provide additional information?
2 Answer from Attorneys
Well, this-here's a good URL, isn't it? I assume you're Person B? Anyway, a foreclosure can resume post-bankruptcy upon granting of a motion for relief from stay to the mortgagee. With regard to primary mortgages, non-judicial foreclosure is a one-remedy option that's exercised in California by senior/primary mortgagees; however if there are junior under- or non-secured mortgages that a non-filing, non-spouse co-debtor is liable on, the bankruptcy-filer can be forgiven the debt, but such co-debtor will be on the hook. If you're a co-signer on a debt, it may be prejudicial that you're stuck alone with the obligation, but it's not unfairly prejudicial from a legal standpoint. While you are not in bankruptcy, it may still be helpful for you to consult with a bankruptcy attorney to assess your overall situation.
Belabored cocktail-party-conversation-as-legal-advice-clich� disclaimer: this answer (as well as our Web site) doesn�t address all facts & implications of the question; it�s not legal advice to be relied upon; it creates no attorney-client relationship; rather it is personal opinion w/general info on CA law; it�s drafted prior to posting of other answers & doesn�t reflect upon the latter. Seek legal counsel before acting or refraining from bankruptcy/legal action; it�s worth the cost. Okay, I�m done.
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