house and bankruptcy

I am looking into filing for bankruptcy, but have a question about a home that I am a co-owner of. This house is worth about $275,000 but the mortgage is sitting at around $350,000. Clearly we bought at the wrong time. Now the co-owner is not part of my bankruptcy. What will happen to the home? How will my claiming effect the co-owner?

Posted on Wednesday, March 11, 2009 | Filed under: Bankruptcy
 posted by Questions @ 11:54 am 1 Comment
1 Expert Comment:

 At March 12, 2009 | 10:49 am , Barton Goth, Trustee in Bankruptcy Said...

There are ultimately two options. First, you continue to make payments as originally contracted and the bankruptcy will have no impact on your home. The second option is applicable if you are not in a position where you are able to make payments, then before you file for a bankruptcy you should tell the bank to foreclose on the property. If you do this prior to filing for bankruptcy then the bankruptcy will clear you from the shortfall that will result.

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