Home awarded to ex wife in divorce, if husband files for bankruptcy can creditors go after house

Chapter 7 Bankruptcy 2 views 3 answers
My wife and I are recently divorced. I have signed over the house to her so that she and the children can have a nice place to live. I am going through very tough financial times right now and may file bankruptcy ch 7 since my income has dropped about 2/3rd this last year due to the subprime bank implosions...My question is If I file bankruptcy can the go after my ex wifes house? We havent re financed so the mortgage still has my name on it but I signed the house over to her in the divorce decree.

Attorney Answers

3
Lesley Hoenig ·
This Depends on many factors, like, the amount of equity in the house and whether the payments on the house are current. You really need to talk with an attorney that knows the specifics of your situation and can advise you accordingly.
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Christopher Cauble ·
If she still has her name on the mortgage or deed of trust and she has not re-financed AND she does not keep the payments current, then the mortgage company would be able to forclose no matter what you do. Also, she is responsible for any joint loans even if you file for Bankruptcy. That is a common misconception. For instance, you may have had a joint credit card or joint car loan and agreed to pay them as part of the dissolution. However, if you file Bankruptcy, the creditors can look to her for payment even though the debts are discharged as to you. And, they can go after her equity in the house if there is enough there (I don't know enough about this to give advice on that issue). So, in answer to your question, a bankruptcy does not take her out of jeopardy. She must maintain payments and will remain responsible for any joint debts.
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Gregory J. JalbertChapter 7 Bankruptcy AttorneySeattle, WA ·
I would need to sit down with you and get more information before I could answer your question for sure. If the payments are current the creditor does not have a right to repossess a home but bankruptcy always complicates things so I would suggest you sit down with a bankruptcy attorney to review your situation and then he/she can give you more of an answer you can rely upon.
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