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Liability in Chapter 7 Bankruptcy Discharge Business Bankruptcy

Discussion in 'Bankruptcy Law' started by truthfinder, Dec 14, 2010.

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  1. truthfinder

    truthfinder Law Topic Starter New Member

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    I'm was a cosigner on a mortgage where the other debtor filed chapter seven bankruptcy. The debtor received a discharge and now the property is in default and pending foreclosure. I do not want the property and cannot afford it. I only cosigned as a favor but the debtor betrayed our agreement and filed bankruptcy not caring about the implications it has on my finances. After the bankruptcy filing the property endured damage. The property is abandoned but it has ongoing maintenance fees that were not discharged. The debtor refuses to contribute to paying for ongoing maintenance fees and refuses to pay for repairs to the property to prevent future law suits, and injury to anyone who comes into contact with the property. The debtor also refuses to sign over the deed to me or to attempt to sell the property. I am now getting sued.

    Does anyone have any ideas on how I should approach this issue? I have already consulted lawyers who offered different approaches without anything concrete. Can anyone offer me some free legal advice?
     
  2. army judge

    army judge Super Moderator

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    Have YOU considered filing bankruptcy?
     
  3. despritfreya

    despritfreya Active Member

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    Ditto to AJ's post and who is suing you. . . and, if you are comfortable, what State are you/the property in?
     
  4. truthfinder

    truthfinder Law Topic Starter New Member

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    The property is located in the state of New Jersey. I am being sued by the mortgage lender and the maintenance association. I have been told by lawyers that I do not qualify to file bankruptcy.
     
  5. despritfreya

    despritfreya Active Member

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    Is this suit in the nature of a "Judicial Foreclosure" or is the lender suing for the balance due after it has foreclosed? If it is a Judicial Foreclosure, at this time the lender is probably only seeking recovery of its property. If the suit is for $$, unfortunately it will obtain a judgment against you and then seek to collect on the judgment as allowed by law. This is the risk you took when you co-signed for someone. (Please note, I do not know if you are protected by some anti deficiency statute that may be applicable in your State - you need to check with a local attorney.)

    Unfortunately this also goes along with co-signing if your name is also on the title to the property. In addition to its claim against you, the HOA can recover against the bk debtor for any and all assessments, fees and dues that fall due from the date of the bk until the property is foreclosed. Did the Association also name the debtor in that law suit? If not, and there are post bk fees for the property, it may sue separately or it may amend its Complaint to add the debtor for the post petition portion of its claim.

    Everyone "qualifies" for bankruptcy. The only issue is which Chapter to file. If you are dealing with major dollars between the mortgage lender and the HOA you may need to consider a reorganization bk (Chapter 13 or 11) if you do not qualify for a Chapter 7. Consultations are usually free therefore get more than one opinion.

    Des.
     
    Last edited: Dec 15, 2010

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