Legal Question in Bankruptcy in California

Co-signed home loan liability

I co-signed on a home loan with a friend, who moved out after 10 months. I've been keeping my head above water to keep it and found a buyer 2 weeks ago. Escrow was supposed to close in two weeks, when I recieved a letter stating the the other party was filing bankruptcy. From what I understand, now the home can't be sold. Is this correct? If he is claiming bankruptcy, then what is my liability afterwards? Am I still responsible for the balance, or a portion? I can't afford to keep the house any longer after the Escrow. What is my best course of action? Can the home be removed from the bankruptcy proceeding?


Asked on 2/16/02, 5:17 pm

2 Answers from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: Co-signed home loan liability

your question is unclear. There are too many problems with your question to list here but for example, you identify two other people, your friend and a buyer, and you say "the other party was filing bankruptcy". how are we supposed to know who is filing bankruptcy? there is no way this question can be answered as worded. there is also other information that is missing, for example, who owns the house.

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Answered on 2/16/02, 6:21 pm
Mark Markus Law Office of Mark J. Markus

Re: Co-signed home loan liability

I agree with Ken. What chapter of bankruptcy was filed? Who filed it? Who is on title to the home and how is title held?

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Answered on 2/16/02, 7:33 pm


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