QUESTION
Will his bankruptcy affect the profit of my home sale?
Asked on Apr 14th, 2016 on Bankruptcy - New York
More details to this question:
My ex-husband is filing bankruptcy. His name is on my mortgage loan of the house but not the deed as I recently filed a quitclaim deed. I am in the process of selling my house but don't have a buyer yet. It's worth $300,000 and I owe $250,000. Per the divorce decree I get all profit of the house sale.
5 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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The first question is, why did your ex quit claim his part of the house to you? If it was part of the divorce settlement, you're OK. If he just handed it to you with no reason, the trustee in his bankruptcy might be asking for 1/2 the house to be turned over to him/her. Assuming that's not a problem, since you own the house, all of the profit on the sale is yours. There is a $500,000 exemption for the profit on the sale of your primary residence, so you probably won't have to pay any income tax on the sale.
Answered on May 17th, 2016 at 3:14 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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In all likelihood your equity in the house is safe so long as the Quit-Claim Deed was properly recorded.
Answered on May 16th, 2016 at 6:44 PM
2 Awards
It should not affect your sale.
Answered on May 16th, 2016 at 4:33 AM
You have more problems than you can imagine. By recently filing a quitclaim deed, presumably from your ex spouse to yourself, a bankruptcy trustee can claim that this action was a fraudulent transfer by your ex. In short, litigation in bankruptcy court could make the quit claim deed you hold worthless. I would be seeing a bankruptcy lawyer in your community right away.
Answered on May 16th, 2016 at 4:33 AM
No, you can go ahead and sell the house it is not his house.
Answered on May 16th, 2016 at 4:32 AM