Legal Question in Bankruptcy in Illinois

refinancing after bankruptcy

hi.

two years ago, my boyfriend's girlfriend co-signed his mortgage with him and now they are no longer together and she has moved out. she also signed a homestead waiver at the time.

my boyfriend filed for bankruptcy in march 2008 (she knew he was going to be doing this when she co-signed with him) and now she is threatening him to get a lawyer and make him take her name off the mortgage.

legally, what can she do to him? she put her name on there willingly and now since he just filed for bankruptcy, it is unlikely anyone will refinance him, correct?

he wants her name off there too, but everything he has read says you need to wait at least 6 months after filing bankruptcy to refinance.

any advice for him? he doesn't want to lose his house and selling right now would be impossible because of the market.

thanks!


Asked on 5/30/08, 9:07 am

2 Answers from Attorneys
Michael Perez Law Office of Michael A. Perez

Re: refinancing after bankruptcy

You have several issues on the table. First, while he is in bankruptcy no one can sue him for anything without going through the bankruptcy court. If she wants to get off the loan the only way is for him is to refinance. This cannot generall occur during the bankruptcy case and must happen later. I have not heard of loans happening before 12 months after BK but I do not thing there is a rule against it. But note that the banks are really tough right now on who they give credit to. The ex really has no beef that will get her to court and force him to refinance.

But if her name is on the deed she may claim an interest in the proerty. Just because she waived homestead does not mean she does not have an interest. It may be a good idea to get her off of the loan/property.

Mike

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Answered on 6/17/08, 3:37 pm
Joseph Michelotti Michelotti & Associates, Ltd.

Re: refinancing after bankruptcy

Only the mortgage company can remove her from the mortgage. If they were not married, why did she waive homestead?

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Answered on 5/31/08, 9:55 pm


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