Fernandina Beach, FL Bankruptcy Law Firms & Lawyers

It sounds like you want to strip the second mortgage because it is wholly unsecured, because you owe more on the first mortgage than the house is worth. But, to do that, you have to include a provision in the original plan. You can't amend the plan 2 years later to add that provision.

An attorney can file a joint bankruptcy for both of you as long as you are married. An attorney can also file a separate bankruptcy just for your husband. If only your husband files, any debts in your name or joint names will become your sole obligation. One attorney could file your joint bankruptcy, but would have a conflict of interest in representing either of you in the subsequent divorce. By filing a joint bankruptcy before you divorce you can not only pay one filing fee for both of you, but you can also eliminate the marital debts as an issue in your upcoming divorce.

The answer is that the note and mortgage still govern the transaction. All that has changed is that the lender can only look to the property for payment, not to discharged debtors. So the lender can still raise or lower the payments, pursuant to the Note and foreclose if the terms of the agreement are not complied with. You are correct that your personal obligation to pay has been discharged. You can certainly sell the property and payoff the balance of the mortgage, but I would only recommend this if you are going to get money from the sale. Why try to short-sell a property that will inconvenience you by showing it when it does NOT affect your credit rating and does NOT get you any money. Banks seem leery to refinance these properties, but why a NEW lender wouldnt give you a mortgage if all other criteria is met, is a mystery to me.