Ex-wife filing bankruptcy on co-owned mobile home.

[wingsofpeace]

My husband was divorced some 10 years ago. In the divorce agreement, he was to keep their mobile home. A couple of years later he planned to sell it.
She told him she and her mother were in need of a home. He had the home
moved from KY to IN, his expense, with the agreement that she would remove his name from the loan. She did not, even after several times of asking over the years. Now, she is claiming bankruptcy. His name is still on the loan with a total of $21000 remaining. We are to close on our home next month and are uncertain of what to do. (We do not currently live in IN where she has filed bankruptcy)

That is not a great situation. She can discharge the debt and he will be liable still to the lender.

It may help to have somebody legally trained review all of the documents.

Only if a court order already exists can you easily enforce her obligation if she goes into bankruptcy.

She has no authority to remove his name from the loan. The only way to do that is for him to sell out his interest to her, or for them both to sell it.

She didn't remove his name because she couldn't. Not because she wouldn't. Asking several times instead of taking proactive action was his mistake, not hers.

Your husband will most likely end up owing at least partly on the remaining balance. It's a tough life lesson, but it may teach him to take better care of his financial life in the future.