Does a wife’s bankruptcy discharge on the familyhouse release her husband from that financial obligation?

Get Legal Help Today

 Secured with SHA-256 Encryption

Does a wife’s bankruptcy discharge on the familyhouse release her husband from that financial obligation?

We have been trying for a loan modification. Bank of America has offered us the HAFA short sale in lieu of foreclosure. We are currently residing in NM while our son and brother live in the house in FL. My wife filed for bankruptcy and the house was discharged 18 months ago. Does this in anyway discharge the husband from that financial obligation. If not should we accept the short sale option?

Asked on June 29, 2011 under Real Estate Law, Florida

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You need to call the attorney in Florida as to what happened here with the house.  It is my understanding that the Constitution of the State of Florida permits a filer to claim his homestead exempt from the claims of creditors. Provided the property does not exceed the applicable restrictions on acreage, the exemption allowed is of an unlimited value. There are limitations and exceptions to homestead exemptions for those who have recently moved to or purchased a home in Florida.  But filing Chapter 7 does not necessarily protect you from foreclosure.  And in may states the lien holder will loo to the non-filing party for repayment.  Selling the house is always better than foreclosure but really this question can only be answered after looking at all the paperwork involved.  What ever you decide make sure that any deficiency against you is waived.  Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption