Cold Spring, NY Bankruptcy Law Firms & Lawyers

Assuming that either your Divorce Decree or Separation Agreement contained a clause whereby the ex agreed (1) to be financially responsible for the mortgage payment and (2) to indemnify and hold you harmless from the mortgage obligation, the ex's "hold harmless " agreement to you is not dischargeable in his bankruptcy. However, the Bank was not a party to your matrimonial agreements and is not bound by the terms of said documents. Accordingly, if the ex files bankruptcy the Bank will not be able to pursue him, but they will be able to look to you for payment. If the Bank sues you, you would be able to "implead" your husband into the lawsuit, on the grounds that he is actually the person who is liable to the Bank for the obligation. While this technical relief can be helpful from an academic standpoint, you would still be in the middle of a lawsuit that you do not want to be in. You do not provide enough information for me to determine if you would actually be in any real jeopardy, and I would strongly suggest that you discuss this matter with competent, local bankruptcy counsel.

There are two kinds of liability in a mortgage. Personal liability and property liability. The bankruptcy probably discharged your mother's personal liability but bankruptcy usually doesn't affect property liability, meaning the lender can take some or all of the proceeds of a sale. There are other aspects of property liability, you should consult an attorney to discuss the specific situation.

No, first of all, it is a reaffirmation, and second, no it cannot be done now. Generally, it is not a good idea to ever reaffirm a mortgage. If your lender is asking for it in order to refinance, go to some other lender.