Legal Question in Bankruptcy in Indiana

Money or Property Owed to Debtor- Worksheet...

I took out a second mortgae of 25,000 on my house, because i was an idiot I let my ex-wife barrow from me $13,000...I have real doubts i will get anything back...Do I list it on the worksheet...the loan is in my name only and I am soley responsible for paying it, whether she pays or makes small paymnets or not...Is the following a true statement?

Found on Internet...

In the case of a Secured Second Mortgage or a Line of Credit Loan, which was provided directly to the debtor; the sole responsibility and liability of repayment, or default of Secured Loan, is the debtor’s. Any financial assistance, or borrowing of additional funds for repayment of a loan is not classified as earning for determination of Bankruptcy Filing Worksheet for Chapter 7, unless the debtor is charging a fee or interest, in this case those monies would be classified as interest or miscellaneous income on the filing Worksheet.

In the event that the debt circumstance in this example is being “discharged” or “reconsolidated” under a Chapter 11 or Chapter 13 Filing, any monies owed by a third party on said debt would need to be calculated and accounted for on the Filing Worksheets.

Asked on 9/27/06, 4:30 pm

1 Answer from Attorneys

C. David DuMond Law Offices of David DuMond

Re: Money or Property Owed to Debtor- Worksheet...

If you can understand that instruction "from the Internet," you're a better man than I am, Gunga Din. If you are preparing a worksheet for a law office, then ask that lawyer what to do about the loan. Worksheets are not filed; they are devices to organize information. Myself, I would list the entire loan as a secured debt, and list the amount you loaned to your ex-wife as an asset. If you are attempting to file a bankruptcy case without a lawyer under the new code, then you are, as the Jesuits say, invincibly ignorant. Good luck.

Read more
Answered on 9/27/06, 8:54 pm

Related Questions & Answers

More Bankruptcy Law questions and answers in Indiana