A bit of background: My ex and I have been separated for over a year and are supposed to (finally) go sign the papers and waiver of hearing tomorrow. However, there’s a new and unexpected twist, which I found out when I got a suprise visit from the mortgage company rep late last week.
It seems that, contrary to our verbal agreement, he has not made a house payment for two months. On the 16th of this month, in fact, it will be THREE months, at which point the mortgage company is likely to begin foreclosure proceedings.
We were planning to put the house up for sale after the divorce (and were planning to each make 1/2 the payment until it’s sold), but I’m pretty sure that we’re upside-down on the amount we owe, and there’s no way we can bring money to the table at closing to pay the thing off. That probably means bankruptcy for me, at least, and probably him as well.
So. IF the divorce papers state that we’re equally responsible for the debt, and I later declare bankruptcy, will the bankruptcy supercede the divorce settlement and release me from that obligation? I would assume he would be able to pursue it (my paying half, I mean) in court, but what about the mortgage co?
Would I be wiser to let them foreclose on the sucker, and THEN declare? I’m moving out within a few weeks, so housing is not an issue. There is no way I can catch up the payment myself, even once he begins making support payments; nor is there any way he can catch it up.
I do plan to consult a bankruptcy attorney about all of this, and to let my divorce attorney know what’s up. But I’m due to sign papers tomorrow (and oh, MAN, do I want to sign those papers!). Currently, the agreement says we will split the payement until the house is sold. Of course, it doesn’t address the defaulted payments.
My idea is that you not sign the divorce papers until this mess is cleared up. I also suggest having your lawyer contact the mortgage company to work something out to avoid foreclosure.
I think she’s okay, actually. She’s definitely better at lawyering than my ex was at spouse-ing, and of course she isn’t the one who bailed on the house payments.
Anyway, the papers are signed and I’ve consulted a bankruptcy attorney, and everything is as good as it can be right now.