Legal Question in Bankruptcy in North Carolina

When you file for bankruptcy, list the creditor and schedule the property, the discharge order causes the debt to be discharged. That means that the creditor cannot collect anything from you. The creditor can foreclose on the property if your ex does not make the payments. The fact of the bankruptcy discharge does not change ownership. Thus you still hold ownership of 1/2 of the property, which is still subject of the lien. The correct way to fully separate is to convey the 1/2 interest in the property to the ex. If there was equity in the property it ought to be included in the separation agreement accounting to make sure each side ends up with his and her share of the marital assets. Ideally the ex should refinance, that is the only way you can cause your name to be removed from the mortgage note. It may be of no great consequence because the mortgage company cannot collect from you because of the discharge. You should speak to a bankruptcy lawyer because there are other issues that may come up in a bankruptcy following divorce.