If a couple are married and buys a house together and the husband filed bankruptsy does that include the wife?

Question

I have a family friend that her husband left her with her two kids to raise. The has bought a house together and i guess both of their names were on the deed. Though they are no longer together they never got a divorse and are still married. Her husband filed bankrupt (sp) about a year ago. Just this past week she recieved a letter through the mail saying that she owes $30,000 on the house they once lived in and must be paid by so & so date. (niether of them live in this house now) It was just never paid off. Since her husband filed for bankrupt and they are still legally married is she involved in that anyway? She says she does not have the money to get a lawyer and file for bankrupt. She is afraid that they are going to start taking her belongings if the money is not paid back. I am not very good with the legal system so any input at all is appreciated!! Thanks!!!

Answer 1

If he filed bankrupts on the house it belongs to the bank, i do not see how she can owe that money because the bank does not take only a portion of the loan of the house for bankrupts they take possession immediately. all of it. something doesn't sound right. I would call a lawyer for advice. But i am not sure about the new laws for filing bankr. They are different now. I heard your dept is not dissolved.

Answer 2

It depends on the laws in your state.

She must see an attorney for competent advice. If she can not afford an attorney. Call your local bar association and see if they have a referral panel of attorneys who will take cases for little or no fee. If there is a law school anywhere near her, contact the law school and see if they have a clinical program for the students. Law students will love to do this one.

At a guess, whether she is or may be liable will depend on:
1. Whether marital responsibility for a spouse's debts ends with the parties' separation or continues until the divorce itself.
2. Whether under the laws of your state the lender can get a judgment for the difference between what was received on sale of the property and what was owed.
3. Whether she signed for this loan.
4. The exact form in which title was held.
5. Whether the husband named her in his Bankruptcy petition and whether he listed her as a potential creditor.
6. Other facts too many to mention.

Answer 3

I am pegging that you live in australia so i will answer this one. If her name is on the mortgage deed, yes she is liable for the debt,
BUT she should seek help from legal aid in her area and get some free advice first before doing anything. In the meantime if she already is on a mortgage deed for another house I would suggest she transfers the house into her childrens names as quickly as possible as they would be able to sell that house to pay for the $30000 debt on the other house. Let me know how it goes. Also any car or valuable belongings should be stat declaration over to someone else. Anything not in her name cannot be taken from her. You can bluff the system if you know what you are doing. IF SHE OWNS NOTHING ON PAPER (ie legal documents such as loans, etc) THEY CANNOT GET BLOOD FROM A STONE. especially if she is on a benefit of some sort.

Answer 4

Hello, she does not have to be included in the bankruptcy.

Once the husband goes bankrupt, he no longer has to pay the loans, but any co-signer ( like a ex wife) can still be held responsible, so if she never required the ex to re-finance the house then she have to pay it ( or go bankrupt herself)

Answer 5

Yes she is liable for the debt that she must pay. But then she can sue him to try to get the money back.

Answer 6

yes dear

Answer 7

Yes she has to pay.

Answer 8

yes they do

Answer 9

yeah she hav to pay