Six years ago we co-signed on a home equity loan with our daughter and son-in-law. This was the second loan we co-signed with them. The first was paid in full with no monies from us. We entered this second loan knowing that our daughter had a thriving business and would make the payments without our assistance.
They decided to divorce last year. He has kept the home. Our daughter removed herself from any claim to the home and property. His name is the only one on the primary mortgage. During this process, she filed for bankruptcy. He recently filed for bankruptcy and indicated he would continue to pay the home equity. On the last day to make amendments after the discharge of debt, he decided he was going to include the home equity loan in his bankruptcy. He has refused to re-affirm the home equity loan. That makes us responsible for this loan.
Do we have any legal recourse against this man? We were not notified that he had amended his bankruptcy to include this debt. We know we are legally liable for this debt. We are trying to determine what we can do to get any monies we pay for this home equity back from this man.

progunr

You would have to take him to court, and given this is an equity loan, the amount most likely would not qualify for small claims so you would have to have an attorney.

The attorney will be able to tell you what your options are, but I would assume that if he gets this debt dismissed in the bankruptcy, I'm not sure you would be able to collect it from him either?

Fr_Chuck

If the bankruptcy has not been final, I would have an attorney look at it and see if you have any grounds to contest it.

also if he goes bankrupt on this ( and your daughter is also) why does your daughter not pay since she also should be liable.

But will not the mortage company foreclose when they file bankrutpcy on this