Re: Ohio bankruptcy law - Professionals only please.?

[stein74]

my freind was married for 2 years & divorced. They had a house. Separation agreement ordered it go up for sale and each pay half the mortgage until sale. It's been a year, no sale and she is in default for past 8 months.

He's tried to work with her an not file contempt charges. She turned around and filed chapter 7. Will the fed court relieve her of this debt - leaving him to pay it all? Her name is on mortgage too. Can she get off the hook even if her name is on mortgage? Thanks much.

[stein74]

Wow you have a lot of questions but I will do my best to answer them.
First of all there is no such thing as Ohio bankruptcy law. Bankruptcy law is in federal court and the law does not change depending on what state you are in.
Second, in bankruptcy, one can discharge personal debts. If she files bankruptcy, she will give up her 1/2 of the house to her creditors, and those folks include her ex-husband, so I don't know that that is going to help her much and it will probably mean the ex- gets all of the house w/out having to split the proceeds w/ her which is probably a good deal for him. It also means then he can sell the house for whatever he wants and keep all of the equity over the amount they owe to the bank or that he could refinance w/ the bank and now own the house 100% himself. Also if she earns over a certain amount of money (I think it's $35K now) she has to go to credit counseling and MUST enter into a payment plan to pay off her debts. If you enter into a payment plan w/ your creditors (and that would include her ex and the bank holding the mortgage). Hard to tell you much more b/c I don't know if these folks have a mortgage and whether she is on the title vs. just the mortgage or visa versa but I hope that helps.