- 4 - The purpose of paragraph 11 was to protect Ms. Picou “from any bad debt”; in particular, to protect Ms. Picou from sole personal liability in the event that petitioner filed for bankruptcy and Union Planters Bank sought recourse against her for the Lakewood home mortgages. There was no subsequent modification to the divorce decree. As part of the divorce action, Ms. Picou delivered to petitioner a quitclaim deed conveying all of her right, title, or interest in and to the Lakewood home. In July 1999, petitioner filed for bankruptcy under chapter 13 of the Bankruptcy Code and received a discharge in July 2004. As part of the bankruptcy plan, the bankruptcy trustee garnished petitioner’s wages and used the funds to pay petitioner’s debts, including the mortgage payments to Union Planters Bank. The bankruptcy trustee made mortgage payments of $13,176 and $11,780 in 2002 and 2003, respectively, to Union Planters Bank on behalf of petitioner.3 In October 2005, petitioner refinanced the first and second mortgages held by Union Planters Bank with another financial institution, and he became the only borrower listed on the new mortgage for the Lakewood home. The refinance extinguished any 3 Respondent does not dispute that the payments made by the bankruptcy trustee constituted payments made by petitioner.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011