Expert: Terry Leeders - 8/15/2008

Question
I live in Florida, and a partner and myself went 50/50 into purchasing a home a number of years ago. We share the mortgage and other expenses equally. He is now applying for bankruptcy (not sure which one- 7 or 13, although he makes a reasonable living so probably 7). His attorney has told him he cannot sell the house (which is also half mine). We are both on the title, I am the only one on the mortgage (he had bad credit at the time). What will happen to my ownership in the house if he successfully files bankruptcy? Will they put a lean on it? Currently he is defaulting on his share of expenses. With the bankruptcy, how can I get my fair share back? What can I do to distance myself from his bankruptcy affecting my credit or causing me great debt due to his misfortune? Or am I just SOL? Thanks for any suggestions!

Answer
The court will look to the equity in the home, and what his share is.  The court could liquidate the asset to reach the cash, to pay his creditors.  Now, if there is, you will be given the opportunity to refinance to pay the cash, and buy his share of the property.