Legal Question in Bankruptcy in North Carolina

My wife and I have a joint mortgage debt for investment property. If I file for Chapter 7 separately and my liability is discharged my wife becomes the sole debtor. We no longer have a joint debt. In that event, can a creditor place a lien on our house, which we occupy by tenancy by the entireties?

Asked on 12/04/12, 1:04 pm

1 Answer from Attorneys

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Yes. They cannot force a sale but a judgment is automatically indexed as a lien on the property. So the lender could sue your wife on her liability, get a judgment and then seek to enforce it against her. So if you are going to file, then I suggest that your wife file as well if you are planning on letting this property go. Its going to be foreclosed on if you are not paying for it. however, you will want to discuss this with your bankruptcy attorney.

Where is the investment property located? What kind of investment property is it?

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12/04/12, 4:48 pm

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