QUESTION
If my name is on the title of a home, will this affect my bankruptcy file?
Asked on Sep 13th, 2011 on Bankruptcy - Mississippi
More details to this question:
My partner is buying a house under his credit and he's the only one on the note, however he wanted to add me to the title of the house with joint tenancy in the event anything happens I have interest in the house. My question is if I'm in the process of filing a chapter 13 and I have no financial obligation to the house, since I'm not on the mortgage just merely added to title with joint tenancy, will that implicate my filing and or the home in any way?
12 ANSWERS
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes because it is your asset.
Answered on Jun 25th, 2013 at 12:47 AM
You own half of a house, it is subject to a mortgage, so you own half of the equity, if there is any. If there is, and you cannot protect it, the house could be sold to get cash to pay your debts. You need an attorney's advice here.
Answered on Sep 28th, 2011 at 9:07 AM
Yes. Putting your name on the home was a gift and now you are an owner. Your creditors could put liens on the home and potentially force the sale of a property you never meant to be on. It has to be listed in the bankruptcy and can throw off much of the calculations if there is equity.
Answered on Sep 14th, 2011 at 12:44 PM
So long as is no equity in the home it should be a non issue.
Answered on Sep 14th, 2011 at 12:12 PM
Consumer Bankruptcy Attorney serving Worcester, MA
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Law Offices of James Wingfield
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It will have an effect. But the level of that effect is dependent on the value of the house, whether you can declare a homestead on the house and whether there will be any equity. If you are on the title to the house own half of the equity. So, if there is a $50,000 of equity at the time you file your Chapter 13 case, you will have a $25,000 asset (your share of the equity) for which you may or may not have an exemption. If the equity is not exempt (and if it is not your homestead it likely will not be exempt), then your Chapter 13 Plan will need to account for the additional asset in your liquidation analysis. So, in our scenario, under the liquidation analysis, your unsecured creditors will need to get at least $25,000 in the Chapter 13 plan. Essentially, this gift of equity (which is what this essentially is) will be something that you may have to pay back to your creditors.
Answered on Sep 14th, 2011 at 12:04 PM
Glen Edward Ashman
It could be a catastrophic financial disaster, and you should be discussing this with your lawyer (and do NOT file a Chapter 13 without a lawyer). Owning a home could have an impact as to whether the home can eventually be taken by your creditors, and also as to what you must pay in a Chapter 13 plan.
Answered on Sep 14th, 2011 at 12:03 PM
Daniel James Wilson
Ask your attorney. You are using an attorney, aren't you? It is not possible for a pro se debtor to successfully do a Chapter 13. The house is an asset. It will affect the size of your plan payment.
Answered on Sep 14th, 2011 at 8:24 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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If you name is on title for real estate it must be listed in your bankruptcy. You may be able to claim this asset as exempt. Consult with an attorney as to the implications in your situation.
Answered on Sep 14th, 2011 at 7:54 AM
Chapter 13 Bankruptcy Attorney serving Beaverton, OR
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Law Offices of Alexzander C. J. Adams, PC
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You should be careful. If there is equity in the house, it may affect your chapter 13 payment as well as the amount that needs to be paid to the unsecured creditors.
Answered on Sep 13th, 2011 at 3:49 PM
Family Law Attorney serving Indio, CA
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Law Office of Xochitl A. Quezada
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It will affect your filing especially if there is equity in the property. You need to check with your attorney regarding how this will affect your filing if at all.
Answered on Sep 13th, 2011 at 3:34 PM
judith runyon
You have to list all property you are on title to or have been on title to for the past 2 years.
Answered on Sep 13th, 2011 at 3:33 PM
Samuel Lee Tucker
You would be required to disclose your interest in the real property; the amount of your equity in the property may or may not have a bearing on your Chapter 13 plan.
Answered on Sep 13th, 2011 at 3:26 PM