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Legal Helpers Tip: If you live in Colorado, are a co-owner of real estate with someone who is about to file bankruptcy, and you are not married to the future filer, you need to consult qualified Colorado bankruptcy lawyers for assistance. This situation can become very “sticky” very quickly. Here are a few things to consider.
First, you are most probably a signer on the mortgage, which could become a real problem. If you do nothing and your ex-friend/partner is discharged, you will be responsible for the entire mortgage balance due.
Second, if the bankruptcy court orders the property sold to generate funds to pay off the mortgage, are you willing to lose some potential equity/profit since the house may be sold under “fire sale” terms? Even worse, if you live in the home, you risk becoming homeless.
Since bankruptcy laws are federal, your Colorado bankruptcy lawyers face the same dilemma as would Florida bankruptcy lawyers, Missouri bankruptcy lawyers, or North Carolina bankruptcy lawyers. You may want to consider offering to assume his/her portion of the mortgage debt in return for receiving full ownership in the property.