Expert: Terry Leeders - 9/30/2008

Question
"My situation is this: Filed bankruptcy rel, 01-07. Tried to save the home and didn't include it in the bankruptcy. Spouse left, Divorced 05-07, With three children and two mortgages, one income, I could not maintain payments, tried to re-finance, no one would. Let the home foreclose, 1st mortgage co. took posession of the property, 2nd comapany is suing me for the entire amount plus costs, etc. I have no assets left, no disposable income and if they win judgement and garnish my wages I will be forced to quit my job and move. Or something drastic. I answered the complaint, but with no defense, they filed a motion for Summary disposition in their favor. What can I do?"


Answer
You indicated you 'did not list' the home in bankruptcy.  
1. You were supposed to list all assets and all debts.
2. if you listed both mortgages and did not reaffirm, then the debt is discharged in the case.
3. if you reaffirmed the debt, then you are on the hook.
Talk to your bankruptcy lawyer to see how the debts were listed, if they were at all.  If they were not listed, then they were not discharged.  
4. Perhaps, if the court will allow, you can file a motion to reopen the case, to file the amended schedules to list the home.  This is up to the judge, and there are reopen and amendment fees.