Creditors and Bankruptcy/Bankruptcy

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Question
QUESTION: I was divorced in 2010. I received the house. I did a re-modification with just my name after the divorce was final in 2010. The house is current and none of the payments have been late. My ex-wife recently filed bankruptcy and I am being charged a default fee of $1,000. The company is Carrington Financial. Is this legal? Can she include this on her bankruptcy?

ANSWER: Your wife can include the mortgage (in fact, she must include it) and choose not to reaffirm, however I have never heard of a "default" fee.  I would consult with a local attorney about getting that waived.


Brian V. Lee, Esq.
htttp://www.lee-legal.com

---------- FOLLOW-UP ----------

QUESTION: I am not understanding why she must include the house if she is no longer responsible for the house. if I remodified the loan after the divorce decree awarded me the house and her no liability on any of its debts, and the re-mod is only in my name, how does it apply to her in her bankruptcy?

Answer
No, you're right, that doesn't make sense.  Sometimes I include smaller creditors when I am not sure whether my client's debt has been sold, charged off, or is just being serviced by another entity.

But if your wife was removed from the loan during modification, there was no reason to list the mortgage in her schedules.

Creditors and Bankruptcy

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Brian V. Lee, Esq.

Expertise

Please note that I do not answer Private questions. All questions related to consumer and business bankruptcy, debt management, and personal finances are welcome. Serving clients in the DC-metropolitan area since 2005, I am licensed in Virginia and the District of Columbia. I have provided counsel to hundreds of clients with a wide variety of complex legal and financial issues. Feel free to visit my All About Bankruptcy blog for more information.

Experience

Serving clients in the DC-metropolitan area since 2005, I am licensed in Virginia and the District of Columbia. I have provided counsel to hundreds of clients with a wide variety of complex legal and financial issues. * Bankruptcy Chapter 7 * Bankruptcy Chapter 13 * Bankruptcy Chapter 11 * Bankruptcy Terms * Foreclosures * Mortgage Issues * How to Save Your Home * How to Rebuild Your Credit * Property You Can Keep * Car Repossession * Debt Test * Tips for Consumers in Debt * What to Expect in Court * Washington, D.C., Exemptions * Virginia Exemptions * Checklist of Key Changes in Bankruptcy Law * Changes in Chapter 7 & 13 Bankruptcy Law * Big Changes in Bankruptcy Law

Organizations
DC Bar, VA Bar

Publications
http://www.lee-legal.com/bankruptcy-blog

Education/Credentials
I am a graduate of Rutgers University and the George Mason University School of Law.

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