QUESTION
If my ex wife files bankruptcy on joint owned property, does the bankruptcy also include a quit claim?
Asked on Jun 05th, 2013 on Bankruptcy - Colorado
More details to this question:
My ex wife is filing bankruptcy on a home we jointly own. I am getting the house back and working with the bank. If she successfully files bankruptcy, does that include a quit claim as well?
7 ANSWERS
No, her bankruptcy won't require her to sign a quitclaim deed. If the value of your ex's interest in the property is substantial, the bankruptcy trustee assigned to the case will have the right to sell her interest in order to pay something to her creditors. You would be the most likely person to buy out your ex wife's interest in the property. If the trustee believes that your ex's interest in the property won't result in enough money to warrant a sale, she will be able to keep her interest in the property and will continue to be a co-owner.
Answered on Jun 07th, 2013 at 12:48 AM
General Practice Attorney serving Coeur d'Alene, ID
at
Michael B. McFarland, PA
Update Your Profile
Not necessarily. If she is surrendering her interest in the property, she will be discharged from personal liability on the debt. Assuming she has no equity in the property that could possibly be part of her bankruptcy estate, she could sign a quitclaim deed to make things go more smoothly; but the quitclaim deed is not part of the bankruptcy paperwork, and does not go through the bankruptcy court.
Answered on Jun 07th, 2013 at 12:30 AM
Bankruptcy Attorney serving Henderson, NV
at
Jeffrey A. Cogan Chartered, a PLLC
Update Your Profile
Because you say that you are working with the bank, I presume that you don?t have any equity. If she files a chapter 7, the Trustee should not want the property but some are trying to force a short sale, which you would have to oppose. If she files a Chapter 13, it depends on what she wants to do. Only in the divorce decree or other family court order can she be forced to sign a quit claim. If she refuses to sign, you will have to seek a family court order and ensure that you do not violate the bankruptcy automatic stay in doing so.
Answered on Jun 06th, 2013 at 10:11 AM
Bankruptcy Attorney serving Florissant, MO
at
Law Offices of Thomas Corcoran Phipps
Update Your Profile
The bankruptcy will not include a quit claim deed. The trustee will either abandon any interest in your wife's share or can try to use her share to pay off her creditors. You will need to talk to the trustee or to her attorney to see what is happening in the bankruptcy case.
Answered on Jun 06th, 2013 at 12:39 AM
bankruptcy Attorney serving Paul, ID
at
Paul N. J. Ross Law, PLLC
Update Your Profile
No. Bankruptcy will not provide a quit claim to anything. It just removes her personal liability on the note secured to the house. Hopefully her exemptions and bankruptcy will not end up losing the house.
Answered on Jun 05th, 2013 at 10:05 PM
Deborah F. Bowinski
No. Her obligation for the mortgage loan will be discharged but the property remains in joint name unless she takes some action to transfer it, such as executing a quitclaim deed.
Answered on Jun 05th, 2013 at 9:25 PM