QUESTION
Is it legal for my ex-wife to include my home and vehicle for a Chapter 7?
Asked on Nov 03rd, 2011 on Bankruptcy - California
More details to this question:
My ex-wife filed a Chapter 7 bankruptcy due to a $30,000 credit card debt. She included our home and my vehicle. Is this allowed legally? Is there a way to take off her name on a home loan? She goes to court next week.
14 ANSWERS
Bankruptcy & Debt Attorney serving Jackson Heights, NY
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Ruiz Law Group PC
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She must include all assets she has or may have an interest in when filing for bankruptcy. However, in order for her to be taken off the loan you need to refinance the loan.
Answered on Nov 10th, 2011 at 10:12 AM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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She is required to list all debts in her case. You can continue to pay the home and car.
Answered on Nov 09th, 2011 at 11:52 AM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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It is not only legal, it is required that she fully disclose all of her assets and creditors.
Answered on Nov 08th, 2011 at 9:50 PM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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A debtor has to include the disclosure of all assets to which his or her name is on title to the Trustee. The lender is the only entity who can take her name off of a loan; however, due to the strictly enforced rules regarding bankruptcy crimes, I would not attempt to transfer assets during the bankruptcy or attempt to change liable parties, either, during the pendency of this case.
Answered on Nov 07th, 2011 at 3:47 PM
Bankruptcy Chapter 11 Attorney serving Dacula, GA
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Chronister Law Firm, LLC
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Anyone can file for bankruptcy and include any debt associated with them. However, doing so may, as in your case, affect you and any debt that you want to maintain. You will want to contact your mortgage company and auto loan lender concerning your interest in the property. Once your wife receives her discharge, she will no longer be responsible for the notes on the home or car. The lenders will then, normally, look to you to make the payments as outlined in your original loan documentation. If the home has equity, and she does not have enough exemptions (usually $10,000) to protect her interest in the home, then the court could look for some method to cover (liquidate) her interest in the property to pay creditors in interest listed in her bankruptcy petition. You will need to get a copy of her petition, look at schedules A, C, and D to determine how these two assets are viewed in the eyes of the bankruptcy court. If there is enough equity in the home for the Trustee to seek liquidation, then you will need to work something out with the Trustee or hire an attorney to represent you.
Answered on Nov 07th, 2011 at 1:53 PM
Your ex-wife is required to list all assets required over the last few years, all assets that are in her name, and all debts that she has accrued. If she has any financial stake in your house or car, such as having co-ownership or having her name on the title for either, then she is required to list them as assets. If she currently has her name on a home loan, and she filed for bankruptcy, then you cannot remove her name from the loan for the time being, but can request at the Bankruptcy hearing that you take on all the debt that is in both of your names. If she listed your car and house as assets, and she has no financial stake or ownership in them, then there's no way that the Bankruptcy Trustee could go after this property in order to pay off any of her debts, as she does not have legal title to it.
Answered on Nov 07th, 2011 at 7:37 AM
Seth D. Schraier, Esq. Law Office of Seth Schraier 3647 Broadway Suite 4G New York, New York 10031 Cell: (914) 907-8632 www.SchraierLaw.com
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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It is very confusing when you use the word "included" in the context of bankruptcy. As a debtor, you must disclose your assets in lists and also list your debts. The fact that an asset is listed does not necessarily affect the asset. In particular, if you and your ex-wife are both borrowers under a home loan, her filing for bankruptcy protection does not necessarily affect your obligation to continue to make payments under the loan or your right to continue to live in the house, especially if you are current on the loan. The same goes for the car unless the loan documents say that it is an event of default if your co-borrower files for bankruptcy - in which case the analysis gets more complicated. The reason you are not necessarily affected is because bankruptcy is a federal proceeding, but your property rights are protected also by State laws, which may continue to protect you when you have not filed for bankruptcy.
Answered on Nov 04th, 2011 at 6:47 PM
Family Law Attorney serving McDonough, GA
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South Atlanta Family Law
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In bankruptcy, whether or not the other spouse is filing, the filing spouse has to disclose all his/her assets, including joint debts. If she includes the mortgage and the car note in the petition and she gets discharged without reaffirming those debts, the result is that she will no longer be liable for the debt but you will continue to remain liable. You still get to keep the property if you continue to pay it.
Answered on Nov 04th, 2011 at 6:02 PM
judith runyon
Yes, it is legal. And no, she can't take you name off the title.
Answered on Nov 04th, 2011 at 5:46 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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All debts and assets must be listed in a bankruptcy case.
Answered on Nov 04th, 2011 at 5:46 PM
If her name was still on the loan for the house and vehicle, your ex-wife would've had to include them in her bankruptcy schedules. However, lenders generally want the payments rather than repossessing the collateral. You should consult an attorney who can contact the banks and have the loans put in your name, or otherwise make arrangement to continue payments without jeopardizing your property.
Answered on Nov 04th, 2011 at 5:29 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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It is required that all debts and all property be included in the bankruptcy petition. It is not a matter of including only what you want. Unless you and your ex wife have too much equity in the home or car then the bankruptcy will not affect the debt because it is a secured debt that if not paid will result in foreclosure or repossession by the lender sooner or later. The trustee in bankruptcy will only be interested in the house and car if there is too much equity and can be sold to pay the creditors.
Answered on Nov 04th, 2011 at 5:29 PM
Daniel James Wilson
A debtor in a Ch 7 MUST list all assets and ALL debts. From your e-mail it appears she is a debtor on the home loan. I assume she is somehow on the car loan as well. Her obligation on these debts will be discharged.
Answered on Nov 04th, 2011 at 5:28 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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All assets and all debts must be listed in bankruptcy. The legal effect for secured debts, such as a home or vehicle, is that the debtor will no longer have personal liability for the debt. To kept secured items they must be paid for.
Answered on Nov 04th, 2011 at 5:18 PM