Legal Question in Bankruptcy in Virginia

bankruptcy virginia

In Virginia, if a married person files for bankruptcy, and the spouse does not; and the home is owned (with a mortgage but with equity) but the deed and the mortgage are both solely in the name of the spouse NOT filing bankruptcy, then will the bankruptcy court take into consideration that the spouse filing bankruptcy has financial responsibility for the mortgage in spite of it not being in his name? Also, the non-filing spouse is disabled and in a wheelchair. In essence, since the filing spouse actually pays the mortgage payment, will the court count that monthly liability toward the bankruptcy since the mortgage is not under his name?


Asked on 9/12/07, 9:01 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: bankruptcy virginia

The mortgage expenses will be counted as household expenses on the means test to determine initial chapter 7 eligibility, but will not be discharged in the bankruptcy, and the house will not count as an asset in the bankruptcy. In a Chapter 13, the current mortgage payments can be included as expenses in the calculation of disposable income for purposes of determining the amount of plan payments because total household numbers are used.

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Answered on 9/12/07, 10:39 am


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