Colorado Bankruptcy Legal Questions

You don't have to file for bankruptcy just because he does. If there are debts that are in both of your names, be mindful that he would be relieved of the obligation to pay them and they would still be able to look to you for payment. If the home is in foreclosure, nothing would be gained by signing a quit-claim deed over to him. If you are also a borrower on the mortgage then you will either be expected to pay any deficiency amount or, you may receive a Form 1099 if the lender forgives any portion of the loan.... Read More

First of all, spouses are permitted to file separately, but generally in a marital or community property state, all the assets of the non-filing spouse (except for separate or individual property) must be disclosed on the filing spouse's papers, and some of it could be reached by creditors. By the same token, however, your obligations might well be discharged as well as his, even if you do not file. A quit-claim deed (please note that this phrase means more than 'quick-claim' deed) will not make much difference. I suggest you ask him to schedule a session among the two of you and his lawyer, to review all the facts and all the questions.... Read More

You and he can file separate petitions in bankruptcy whether you are living together or not. As far as the quitclaim deed goes, it only transfers your interest in the property and has no effect on your obligation to pay the debt. But the solution here very much depends on the particulars of your situation and what you want to accomplish. I would suggest you find a lawyer well versed in both foreclosure and bankruptcy in order to find the best path to your desired outcome.... Read More

I would have to know more particulars before I could answer this question. Getting your name off the property may not solve your problem. The foreclosure will still show up on your credit report. You may not have to do anything. I would meet with an experienced BK lawyer to get your questions answered. When someone calls me wanting to avoid filing BK, but has lots of questions about this, that, and the other, I charge my regular hourly rate for the consultation. But you will be informed, and know how to proceed. Good luck what ever you decide.... Read More

Doing a quit claim deed is not appropriate and you cannot compel it without the other person's agreement to do so. ASSUMING you are NOT a co-borrower on the loans secured by the property, being on the deed, should have absolutely NO effect on your credit if you are not filing bankruptcy. Depending on the situation and type of BK filed, it might actually prevent foreclosure and possibly result in other benefits to BOTH of you - so without more details I cannot say whether your soon to be ex-spouse filing BK is a good or bad thing for you. Under some circumstances, it may be advantageous for both spouses to file BK together prior to divorce as it will clear up old debts, give each spouse a fresh start, this may be even more essential if one spouse cannot maintain a standard of living without financial support from the other. Money that would have gone to paying old debts can be used for more important things like: child support/alimony. Advice on all this really depends on many more facts about your circumstances. Obtain independent advice from a local bankruptcy attorney as far as what to expect and how this will impact you. Sometimes this might not even be necessary provided you have a family law attorney who is familiar with the interplay of marital dissolution and Bankruptcy and can advise you.... Read More