Legal Question in Bankruptcy in New York

Re: I co-own a house with someone who is filing bankruptcy

You very well may lose your house, depending on whether there is equity in the home and the amount of equity.

You should consult with an attorney.

Jacob Silver

Attorney At Law

26 Court Street

Suite 2511

Brooklyn, NY 11242

[email protected]

http://www.silverbankruptcy.com

Re: I co-own a house with someone who is filing bankruptcy

Different mortgagees handle this in different ways, and there are a lot of questions that you leave unanswered that I need to have answered before I can give you a good solid response. So much depends on whether your mortgage payments are current, what chapter your co-owner is filing the petition under, whether your co-owner is even a co-mortgagor, if they are a co-mortgagor will they reaffirm the mortgage debt, what the relationship is between you and your co-owner (are you married to this person? is s/he some other blood or marital relative? are you just roommates?), what your credit and income look like, when the bankruptcy is being filed, etc. etc. etc.

What will your co-owner's bankruptcy do to your credit? Probably nothing, unless the bankruptcy results in your not being able to pay your bills. As long as you keep your payments current (and that means the FULL MONTHLY AMOUNT of the mortgage payment), you're probably fine.

Do you need a lawyer? It wouldn't be a bad idea to have one. Some mortgage companies like to foreclose when a bankruptcy hits, since the bankruptcy results in a default on the loan. Those mortgage companies are few and far between, though; mortgage companies want money, not people's houses. Be sure to keep the mortgage payments current. The bankruptcy will put a flag on the account at the mortgage company and they will very likely track it closely for at least a couple of years.

Feel free to contact me offline if I can be of further help.