QUESTION
How can a spouse prevent filing bankruptcy?
Asked on Dec 12th, 2011 on Bankruptcy - California
More details to this question:
Can Spouse A, who has no other debt at all, quit claim their martial home to the other Spouse B, to prevent Spouse A from having to file bankruptcy. If not, how can Spouse A be prevented from having to file bankruptcy with the marital home at as A's only asset & liability?
9 ANSWERS
You cannot move assets around in contemplation of bankruptcy - that would be fraud and both federal and state laws would prevent or reverse fradulent transfers of assets that are purposefully shielded from creditor attachment.
Answered on Dec 14th, 2011 at 4:26 PM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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The transfer from A to B would be a fraudulent transfer and would be avoidable by a bankruptcy trustee. You could negotiate settlements with your creditors.
Answered on Dec 14th, 2011 at 4:22 PM
Litigation Attorney serving San Gabriel, CA
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West Themis Law A Professional Law Corporation
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Upon my reading for your question, it essentially says: Since A has debts and owns a home, if A transfers the asset to B, then A would not need to file bankruptcy since A no longer has an asset? Correct? By this very question, A has committed fraudulent transfer. An intentionally and knowingly transferred A's only asset for the sole purpose of making it difficult or impossible for A's creditors to get assets.
Answered on Dec 14th, 2011 at 1:22 PM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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One spouse can't prevent the other from filing bankruptcy. Quit claiming the deed would not affect the debt so Spouse A would still be liable.
Answered on Dec 13th, 2011 at 9:03 PM
Glen Edward Ashman
Most of your question doesn't make sense, but any transfer between spouses to keep property out of bankruptcy could be fraudulent and land both parties in jail.
Answered on Dec 13th, 2011 at 9:02 PM
Daniel James Wilson
Transferring property before filing is a transfer that can be undone by the trustee. Its also a crime.
Answered on Dec 13th, 2011 at 8:52 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Every person has a constitutional right to file bankruptcy which cannot be prevented.
Answered on Dec 13th, 2011 at 8:20 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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You cannot prevent a spouse from filing bankruptcy. You should talk to an attorney before doing serious and dangerous things like quit claiming property. It might seriously affect you and your spouse depending on the situation.
Answered on Dec 13th, 2011 at 8:14 PM
judith runyon
You can't do that. It is considered Fraud.
Answered on Dec 13th, 2011 at 8:12 PM