Mercer University, GA Bankruptcy Law Firms & Lawyers

To avoid foreclosure you can pursue a loan modification. If you choose to give up the house and want to avoid a foreclosure on your record there are choices. You could do a short sale. If the lender agrees, you could do a deed in lieu of foreclosure.

Simply, the bank can repossess the car, sell it and collect from your husband the difference between the sales proceeds and the balance owed on the car loan plus costs. If your husband does not pay then the creditor can garnish his wages, levy your bank account and put a lien on any real estate you own. The creditor cannot proceed against his mother because she filed for bankruptcy. Any money in the bank in any account with your husband's name can be levied. Although all you have is community property and can be taken to satisfy your husband's debt, most likely the creditor will go after his wages, any bank accounts on which your husband appears as an owner and file a lien against any real estate in which your husband has title. Your husband is liable for 100% of the debt and there is nothing he can do about it but pay or settle it for less (except file bankruptcy himself).

The co-owner's bankruptcy doesn't really change your position.It just means you can't sue them for contribution.Your position with the mortgage lender is still the same.