QUESTION
How will spouse filing bancruptcy to slow foreclosure affect me?
Asked on Jul 15th, 2012 on Bankruptcy - Florida
More details to this question:
Spouse purchased house before we legally married. We are to file for divorce soon. He has chosen to let home foreclose. Now that lawsuit for foreclosure has been filed, he is working on filing for bankruptcy with a lawyer, to delay said foreclosure. I was a stay at home mother until new career began recently. His name is on title of the car I have been driving for 5 years and insuring/maintaining fir 1 year. Upon asking how filing bankruptcy will affect the cars etc, he has said that it is mine, he will sign it over to me anytime. It is an older, paid in cash vehicle. How will his filing bankruptcy affect me and my newly improving credit? My name is on 1 joint credit card, though I have not used it, but he paid for some of my recent return to school on it. Can he sign the vehicle over to me? I expect to leave with little more than my kids, new career, and a few basic possessions. He purchased my laptop (@400.) for school, and my iphone for Christmas. Are these assets he will claim that can be taken? What about the bicycle be bought me 8 yrs ago (road bike, unknown value, decent but not crazy - @500.) Those are the few things I use regularly that I want to know how his filing will affect. Most importantly though, how will it adversly affect me and our divorce filing? Should I file for separation or divorce before he files (it it's possible)? Thank you
2 ANSWERS
Burton J. Green
I am not going to give you advice about a divorce. For those questions you should consult directly a divorce attorney. As to your bankruptcy questions, any property that was a gift to you is your property and will not be included in his bankruptcy. Only exception: any property that has a title on which his name appears will be included in his bankruptcy to the extent of his ownership in that property. He can give you title to the car but the transfer of title to you should be included in his bankruptcy papers. The trustee assigned to his case has the right to demand that you turn over the car to him if it has enough value to warrant being sold at auction. Where I practice trustees do not want anything if after all costs with selling the item the trustee does not net at least $1000.00. You take your chance but at least have the car titled while you can. Your credit will only be affected by any account not being paid that you are also legally obligated to pay. His separate accounts do not affect you. If you want to be sure that your credit is not adversely affected by a non-payment of a joint account you will have to start paying the account and/or bringing it current. His bankruptcy will discharge his responsibility for paying his accounts, including any joint account with you.
Answered on Jul 20th, 2012 at 4:57 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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Your question is multifold. He will need to list you as a co-debtor and will need to list the transfer of the car to you. We do not know which chapter he is filing under. A chapter 7 or a chapter 13. If it is 7, the trustee may want some money from you in order for you to keep the car. File for divorce, get it established what his child support obligation is. Filing just to delay a foreclosure only could be an abuse of the system. As far as gifts to you, they are not his property, but yours.
Answered on Jul 20th, 2012 at 4:56 PM