Legal Question in Real Estate Law in California

She is right not to sign, since the debt is discharged as to her, and would be revived if she signed. You have no right to make her give up her half interest just because she filed for bankruptcy. It belongs to her. You don't have the right to take it from her. The bank cannot move forward on the modification due to the bankruptcy, and they cannot refinance you without her consent because their security survived the bankruptcy, but would not survive a refinance unless she agrees, which she would be foolish to do since she just got free of the debt. The only thing I can think of you can do is force her to sell the property with you or to you by filing a partition action.

People who are in bankruptcy have basically given up control of their assets and responsibility for their liabilities. From the moment of filing until the moment of discharge, their financial matters are in the hands of the court-appointed trustee. It is possible to petition the bankruptcy court for special orders regarding the bankrupt party's assets and liabilities. You should either re-ask your question on LawGuru under the bankruptcy heading or, perhaps better, consult with a bankruptcy attorney near you to get an idea whether any action in court would be worth while.

If she is in Chapter 7, her interest in the property belongs to the bankruptcy estate, and the court has appointed a trustee. You need to be dealing with the trustee, and not her directly.