Oshtemo, MI Bankruptcy Law Firms & Lawyers

Yes, it's usually better to get a deed in lieu or a short sale (few lenders will do a deed in lieu unless you have had the house on the market to show that a short sale won't work). This avoids having a foreclosure on your credit history and avoids the liability from having a vacant house. Once you have informed the lender that the debt was discharged in a bankruptcy, it's the lender's responsibility to check it out not yours. Simply by informing them of your discharge, you've done everything which is required of you. You might need an attorney to work out the details of a short sale or deed in lieu. Many lenders will not deal with discharged borrowers to avoid any allegation of harassment.

You can file a individual bankruptcy. However, the income test for whether you can file a Chapter 7 is based on household income - so you need to include the income of both of you (unless you're living separately). Filing bankruptcy cannot cause any other person to become liable for your debts. The only way your spouse can become liable for your debts is if he signed an agreement assuming those debts. Of course, there are some debts of a married couple that are automatically joint debts, for example health care costs of either spouse or the support of a joint child. But these debts are joint from the time that they are incurred. Debts which are not joint when they are incurred don't become joint later.

Did the reaffirmation agreement get accepted by the judge? Merely signing a reaf doesn't make it effective. The judge has to approve it. If it was approved by the judge, there is scant hope that she'll be able to reopen the case 6 years later.