The main signer filed chapter 13 last year. He fell behind now bankruptcy case is voided. He will get wages garnished. My concern is to protect my grandmother. With her living in florida I'm not sure where to start .
She is probably judgment proof and her social security is exempt from seizure, but I would consult a NJ bankruptcy attorney who can look the matter over for you.
Ignore it. She is judgment proof and likely will not owe anything here. She will be sued in the foreclosure to clear title, but she can ignore the case.
If the house is foreclosed, most of the time the bank takes the home. If it sells for less than it is worth, they may send a 1099-c form forgiving the debt which becomes taxable income unless the person fills out the right form on his or her taxes. Its rare that a bank sues for the delinquent funds.
Your grandmother has multiple options at this point as does the person in NJ. The main thing is both should be talking to a foreclosure defense attorney that understands NJ foreclosures to go over the options.
I’m not really sure if your grandmother is trying to save her one or not. I would need more information I would suggest contacting a Bankruptcy lawyer in Florida where your grandmother lives.
