Expert: Terry Leeders - 4/5/2009

Question
I'll start by saying  our current home is in my name only. I've been un employed for over a year now, and my wife is the breadmaker covering the mortgage & most of the bills. I contribute with freelance work and odd jobs. This has taken a toll on our marriage and my wife has decided to move out, and purchase her own home in her own name. She has a good job and can certainly afford it.Can she do this ? She has not filed for divorce yet ? Our current home is in my name only, but with her leaving and me without a job, there is no way I can keep up with the payments. Is chapter 7 & foreclosure an option for me? I have no assets, and I'm underwater with the home. plus, will a chapter 7 clear me from any deficiencies? thank you for your valuable time and information

Answer
Yes, she is free to purchase whatever she wants to. She is not obligated to make your mortgage payments, even is she has been consistently doing so in the past.  You can walk away from the home in chapter 7, discharging the balance,  or you can catch up if you get back to work, by filing a chapter 13 repayment plan to cure the default that may accrue.