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In SS process now x files for Bankruptcy

Posted by David on February 20, 2013 at 1:44pm in Short Sale Discussions

Hello:

My X and I are in the SS process of our primary residence and now she decided to file for bankruptcy before it is closed. It's still in the process of being completed.

I would like to know if anyone else has experienced this.

Both of our credit is poor, but I am not filing or intend to file for BK.

The loan is the only thing that we have signed jointly, other than our divorce papers.

Does anyone know of what implications if any of her filing BK that will have on the SS? I am not sure if it was Ch7 or Ch 13, it may not even matter.

Any information is appreciated.

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Replies

  • Smitty February 20, 2013 at 4:27pm

    If it's 7 be prepared to wait for approx 90 days before a discharge is issued, and only after the discharge will a lender issue approval.  If it's chapter 13 you will need permission from the bk court in order to give to the lender for short sale approval.  Chapter 13 is approx 3 years. 

    She will likely not be liable for the debt remaining on the house, but you will still need the liens (mortgages) discharged.  You still COULD be liable for remaining debt on the property if your negotiator doesn't get the deficiency waived for you. 

    I would say at a bare minimum she just tacked on about 8 weeks to your sale.

    I'm not an attorney, and you should ALWAYS consult with one on any of the above.

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