QUESTION
If my wife is on the title of the house and she is filing for bankruptcy by herself would it affect the house?
Asked on Apr 30th, 2013 on Bankruptcy - Michigan
More details to this question:
The mortgage is in my name and the house will not be listed in the filing of bankruptcy. I do not want my house involved. What will happen?
14 ANSWERS
If there is a lot of equity, particularly beyond what she can exempt, she may risk subjecting the house to liquidation in bankruptcy.
Answered on May 08th, 2013 at 1:25 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Since your wife is on title it is listed in her bankruptcy. This might mean that the house will be sold by the trustee. Consult with an attorney.
Answered on May 02nd, 2013 at 3:02 AM
If your wife files bankruptcy, and if she is on the deed to the house, she has to list the house as an asset of hers. It is not an option for her to leave that out. If she fails to disclose her interest in the property she is violating federal law and could suffer serious repercussions. She has a "1/2 interest" in the house. She will not list the mortgage as a liability of hers, but should note in the asset schedule that the house is encumbered by the mortgage and whatever, if any, other liens are on the property. If the value of the house is more than the total of all liens on the property, then there is equity in the property. 1/2 of that equity is hers. She is entitled to a $40,000 homestead exemption that protects the first $40,000 of her 1/2 of the equity from the bankruptcy Trustee. If her 1/2 of the equity is more than $40,000, then she needs to have a serious discussion with a bankruptcy attorney about whether her equity is enough to cause a problem with the house. If there is a lot of equity in the property, there is a potential that the Trustee could put the house up for sale or make an offer for you to buy her 1/2 of the equity.
Answered on May 02nd, 2013 at 2:52 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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If she is on the title she is required to list the house as an asset.
Answered on May 02nd, 2013 at 2:17 AM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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All of her assets (including the house) must be disclosed in her bankruptcy. If there is no equity, then the trustee will not touch the house.
Answered on May 02nd, 2013 at 1:46 AM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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Idaho is a community property state. If she is filing bankruptcy she should list some ownership interest in the home as well as some liability on the mortgage. Some of this depends on whether you purchased the home together or before you were married (or if the home was a gift). Generally though if you wife is filing bankruptcy the home should be listed and included. Of course, this is all assuming you and your wife live together in the home. The filing of your wife's bankruptcy should not affect the home though if you are current on your payments. All the bankruptcy does is remove her from liability on the home. Your wife has $100,000 she can exempt in equity in the home. There are issues if she is not living in the home as well. There are many variables that can change here, but generally, the home should be listed and should be safe.
Answered on May 01st, 2013 at 2:43 PM
Deborah F. Bowinski
I your wife is on the title to the house then she MUST list her ownership interest in her bankruptcy papers. Whether the home will be affected will depend upon how much equity is in the property and which state you live in. She should consult a bankruptcy attorney to assist her in filing her case.
Answered on May 01st, 2013 at 2:41 PM
It makes me crazy when people suggest that they can "leave out" property from their bankruptcy filings! Why not "leave out" the million dollars she has sitting in the bank as well? It is the same principal! Bankruptcy law requires that you reveal everything. To fail to do this is a serious criminal offense. What will happen would require more details, so you may want to consult with a bankruptcy lawyer yourself.
Answered on May 01st, 2013 at 2:40 PM
Chapter 7 Bankruptcy Attorney serving Cherry Hill, NJ
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Robert H. Johnson, LLC
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It depends on a number of factors. I strongly suggest that you meet with a bankruptcy attorney.
Answered on May 01st, 2013 at 2:39 PM
Bankruptcy Attorney serving Alpena, MI
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Carl C. Silver Attorney at Law
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The house will be listed in the bankruptcy as all assets and liabilities must be listed. Whether or not the house will be affected depends on how much equity is in the house and which exemptions your wife will have available to choose from. If there is little or no equity, don't worry about it.
Answered on May 01st, 2013 at 2:39 PM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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She must list the house as an asset.
Answered on May 01st, 2013 at 2:39 PM
Bankruptcy Chapter 7 Attorney serving Louisville, KY
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Thornhill & Holt, PLLC
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If she is on the deed, she will have to protect her half of the equity in the home.
Answered on May 01st, 2013 at 2:38 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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If the house is not listed she would be committing fraud, she may lose her discharge and she may lose the house (and also could go to jail). This does not mean that if she discloses it will be lost. She (and you) may be able to keep it if it can be properly exempted.
Answered on May 01st, 2013 at 2:38 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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See a bankruptcy attorney, the question is going to be dependant on state law. If she is on the title of the house her interest in it will have to be at least disclosed.
Answered on May 01st, 2013 at 2:37 PM