Legal Question in Bankruptcy in Nevada

The Answer to your question is much more complicated than you imagine!

If she only has one loan on her home, there won't be any problem because 99% of the foreclosures in Nevada are "non-judicial," meaning that the property is sold by recording and mailing out a notice of default & a sale. This means that the bank or loan company can't sue her for the difference between what she owes what the property sells for.

But if her property also has a second mortgage or Home Equity Loan (which is the same thing), then the bank or loan company can sue to collect the money owed on the second mortgage. Once a Court grants a judgment for the value of the loan, your wages could be attached to pay this debt,since under community property law, half of your paycheck belongs to your Wife. However, this type of debt can be eliminated in Bankruptcy.

If the lender on the second mortgage "forgives the debt," and you file a joint tax return with your Wife, you could become responsbile for the IRS obligation on this loan. IRS debts cannot usually be eliminated in Bankruptcy. The collection power of the IRS is well known!

My advice is to look before you leap! Be careful. If your sweetie needs a bankruptcy to eliminate a second mortgage or has other debt, have her get help from an experienced Bankruptcy attorney.

I hope this helps you out - Good luck!