Legal Question in Bankruptcy in North Carolina

We live in North Carolina. My fiance had a divorce 3 years ago in Indiana. The divorce ordered that he keep his name on the loan of the property he owed with his now ex-wife, but he was to sign the quit-claim deed over, leaving his ex-wife as the sole owner of the property, but giving her the extra time to get the mortgage in her name only. She was ordered by the courts to have this done within 1 year. Well, the house has now been foreclosed on. He wants to file bankruptcy to have his name removed from the loan on the house. The question is, where does he file since the property is located in Indiana? Again, he has no ownership in the home, only his name attached to the loan. We just need to know if he files in the 7th District or the 4th District. Oh, and he fired his divorce attorney, and she was reported to the bar because of her lack of representation for him as her client. So he could not turn to his divorce attorney for the answer to this question. Thanks.

Asked on 9/16/12, 3:30 pm

1 Answer from Attorneys

Thomas Zimmerman Zimmerman Law Office

The correct venue is the state and district of your residence. The bankruptcy will not remove his name off of the loan, but would discharge the debt, meaning the creditor will not be able to sue for a deficiency. He should consult a bankruptcy lawyer. It is not likely that the creditor would come to North Carolina to sue. The downside is the the loan could remain on his credit report for 7 to 10 years. The correct venue for a bankruptcy is North Carolina, not Ohio.

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Answered on 9/17/12, 5:45 am

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