Expert: Mark J. Markus- California Bankruptcy Attorney - 1/7/2010

Question
I have been divorced from my ex-husband since October 2007. Since that time he has had two separate repossessions which i was co-signer on during our marriage. We both now have two separate homes, he lives with his girlfriend in a trailer home. I live with my spouse in a 3 bedroom home. Problem is, i was unable to get his name off the mortgage before he had these two repossessions, therefore now i can't refinance my home without having a higher interest rate. I was awarded the house in our divorce, but apparently that doesn't matter when it comes to getting his name off of the loan. Now we have a mortgage with another 20 years left on it and it is in both of our names. I can't refinance without paying a hefty price for his irresponsibility. Now i'm being told that he is going to file for bankruptcy. My question to you is, when he files for bankruptcy how is that going to affect me and my home? Will they take into consideration that this is my home and i have been living here for almost 10 years, 2 of it without his presence or financial support. I just don't want to lose my home because of the decisions he continues to make post-divorce.

Answer
The issue isn't whether he is on the mortgage, the issue is whether he is on title.  If he is on title to the property and there is equity in it, then it may or may not be sold in his bankruptcy, depending on what exemptions are available under applicable laws of whatever State governs his case and what chapter of bankruptcy he is filing.

If he is on title, you need to consult with a bankruptcy attorney in the location where the case is going to be filed to go over the specifics of your situation.  There is nowhere near enough information here for me to answer your question properly.

For more on exemptions, see http://www.bklaw.com/exemptions.html