Raisin, TX Bankruptcy Law Firms & Lawyers

The mortgage will most likely be sold and transferred as an asset of the bankruptcy and you will have to continue paying the mortgage to the new holder.

It sounds as though you are a defendant in a civil case and a co-defendant filed a bankruptcy petition. If you need his testimony to prove your case, you should be able to take his deposition before trial and to subpoena him as a witness at trial. You cannot pursue him for whatever he may owe you because of the bankruptcy stay, but asking him questions under oath to prove your defense is not prohibited. If in doubt, make a motion in the Bankruptcy Court for permission to subpoena the debtor in your civil case. I hope you are represented by counsel in your case. If not, and if it is important for you to prevail in defending the case, you might want to hire a lawyer while there's still time. Hope this perspective helps.

It is never a good idea to bank where you have any other credit obligation. And, warning, creditors lie to obtain payment from you. I do not believe the bank can offset your account if all funds are traceable to child support/Social Security benefits, but why take the chance? Change banks.