Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...
When an individual files for bankruptcy, as long as you are upt to date with your mortage payments, there normally is no impact on the mortgage, regardless of whether it is joint with someone else or not. The bigger issue isn’t the mortgage, but whether or not there is any equity in the property. The key is as long as you have less than $40,000 equity in the property then you won’t have any issues. It is where you have greater than $40,000 then you may find an impact on the property when a bankruptcy is filed. If that is the case I would recommend you contact a local trustee right away to discuss the potential ramifications of this amount of equity.
When an individual files for bankruptcy, as long as you are upt to date with your mortage payments, there normally is no impact on the mortgage, regardless of whether it is joint with someone else or not. The bigger issue isn’t the mortgage, but whether or not there is any equity in the property. The key is as long as you have less than $40,000 equity in the property then you won’t have any issues. It is where you have greater than $40,000 then you may find an impact on the property when a bankruptcy is filed. If that is the case I would recommend you contact a local trustee right away to discuss the potential ramifications of this amount of equity.