[JMB84]

So here is the situation of myself and my fiancé. I live in Canada, but she lives in California, and recently she was kicked out of the house she bought a while back due to missed mortgage payments and the resulting foreclosure. We managed to find a place to rent in the same town, with her mother and step father as co-signers, and she lives there with her boys. However, the bank for the second mortgage continues to call about the money owed to them, but we obviously can't pay it. I researched bankruptcy options, but there is no equity in that house, everything is exempt with the exception of about a thousand+ dollars worth of stuff (hardly a dent in $100,000). She has no job, or source of income, except for what little money she gets from me on occasion. Does this classify as Judgement proof? Also, we intend on getting married within the next year (maybe even sooner), and I intend on working, can they garnish my wages because of this whole situation, due to association through marriage? Help me, and thank you for your time

[Fr_Chuck]

Ok first there is no such thing as "judgement proof" they can always sue and get a judgement, and it will be good for @ 7 to 10 years and can usually be renewed at least once, So for 20 years they can merely wait for them to have money to garnish or attach in a bank account.

And bankruptcy clears the debts, you don't have to even have equity it is for those who don't more often.

So she needs to look forward and see what if anything is the best to do

[JMB84]

So in the situation of having no equity, no other debts, but a foreclosure on hand, what is the best form of bankruptcy to file for? I have seen both chapter 7 and chapter 13 suggested.

[progunr]

If she has no real income, she should file chapter 7.

Chapter 13 is designed for the creditors to get at least some of their money back, with a lower monthly payment, over a longer period.

Without a regular source of monthly income, I don't see how she could be successful in a chapter 13.

[twinkiedooter]

Her only option would be the Chapter 7 filing.

As Chuck pointed out, there is no such thing as judgment proof so take that into consideration when trying to figure out how to go about getting out from under this debt.