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Quitclaim prior to bankruptcy - How does it affect?

Posted on: 05th Jan, 2006 03:29 am
my husband is in deep debt and we have a house together. he is planning to file for bunkrupcty but before doing that he is planning to do a quit claim on our property to me. i have excellent credit and i dont want to file for a bunkruptcy. is it good move for him to do a quit deed then fiile for bunckruptcy? how will it affect me?
Hi Joann,

Welcome to the forum.

As your father is the only owner of the property, he can quitclaim the property to you. To make the deed valid you will have to notarized the deed and record it in the County Recorder's office.

As your mother is not the owner of the property the creditor may not place a lien on that property. I think it will be better if you try to pay off the debt. Debt consolidation is a good option to pay off the debt in this case as Jessica has also mentioned here.

Feel free to ask if you have any further questions.

Best of luck,
Larry
Posted on: 14th Mar, 2008 01:33 pm
Larry, thanks for that info. I am trying to weigh out all of my options on this situation. My next question is, if my dad and mom have to file bankruptcy before the quick claim is done. What will happen to the house in bankruptcy? Remember the house is feel and clear of mortages. I am in the process of getting a title search done as we speak. My mom and dad are on a fixed income and there is now much room to play with. I am worried about the house.
Posted on: 15th Mar, 2008 07:04 am
Hi Joann,

Welcome back.

So, the house is in your dad's name and he'd like to pay off the small amount of debt that he still owes. Ok that is fine. Now, if your mom's debt isn't paid off, then the creditor may sell it off to a collection agency who's job is to collect the debt from debtors. Now, let me tell you I've heard several people coming across threats and calls and harassments from these agencies. Moreover, there are chances that they'll place a lien on the home.

I won't speak in favor of filing a bankruptcy when there are options to consolidate your debts. However, if you still insist, I'll suggest trying for Chapter 13 but then you need to qualify for it. At least your home is safe in this type of bankruptcy. Otherwise if you file Chapter 7, your debts are wiped out but there are chances (as per state laws) that you may lose the home.

By the way, how old is your dad? I'm asking this because the house being free of liens, your dad could go for a reverse mortgage and pay off all of your mom's debt if he's 62 and above.

Just in case you're interested to know more on reverse mortgages , please refer to the section on this topic.

Regards,

Jessica.
Posted on: 17th Mar, 2008 04:27 am
Jessica, My dad is 69 almost 70 yr old. He has an income of 1388.00 a month Social Security & mom has 562.00 per month SS. We do have some savings but I need to save that for harder time like illness. I DO NOT WANT TO LOOSE THIS HOUSE! It is extremely important to keep it. My parent have lived in the same house for 50 yrs and I don't want them to have to move. They have a total of $48000.00 in debt. Income is 1950.00. I am trying to find a way of helping them without loosing their house. I check with a debt consolidation company and their payment will be $1122.00 p/m leaving them with nothing to live on.
Posted on: 17th Mar, 2008 12:13 pm
Hi Joann,

Welcome back,

If you want to file BK then also you will have to get approved for it. You can try it out but will have a huge negative effect on your credit and will be shown the credit report for 10 years. So it should be your last option to choose.

Best of luck,
Larry
Posted on: 17th Mar, 2008 06:40 pm
i have to wait for one year before i can file bankruptcy, but that quit claim deed is only under my name only. my question is that can my husband file bankruptcy chapter 7 since has has more debt than me.
Posted on: 14th Aug, 2008 10:55 am
I have met up with a bankruptcy lawyer regards my credit card obligations and I have to wait for 1 year before I can file because I have quit claim deed to my uncle. I only had 1 year with that free and clear home of his. My question is that it I have to wait for one year. If I can undo the the transaction and prove to the trustee that I didn't do it purposely?? Is that possible? The reason my uncle quit claim to me a year ago was that he had medical issues and could not maintain the work around the home. He had all his life. Now that he's fine, he wanted back so I did it in June o8.
Posted on: 14th Aug, 2008 11:07 am
Hi,

To stressedout: Why do you have to wait for a year to file bankruptcy? is the property in your name only? If your husband files chapter 7, chances are that you could even lose the property. I suggest that you talk to a bankruptcy attorney prior to filing any chapter.

To Going crazy: I think what you're trying to prove to the creditors is that you haven't filed a quitclaim just to get rid of your liabilities and you won't file bankruptcy for that purpose. Do you really have a way out to prove that you didn't carry out the transaction purposely? I think you should talk to an attorney to help you on how to deal with the trsutee.

Hope this helps..

God bless you both

Samantha
Posted on: 15th Aug, 2008 05:32 am
I have filed a petition for divorce and it is not final yet. My soon to be ex has been racking up credit card debt in his name only and appears to be getting ready to file bankruptcy. In the divorce decree he is to sign over the house to me in May 09 if the house has not sold by then. I am 9 mos away from graduating college, raising my 2 yrs old soon alone and am in fear I will loose our home. HELP
Posted on: 06th Sep, 2008 05:55 am
Hi Lilly,

Which chapter does your husband wish to file? and why does he intend to file bankruptcy where there are options like debt consolidation or debt settlement. I think he should consider any of the two options I've suggested.

Let me know in case you'd like to know more about debt consolidation or settlement.

May god bless you.

Samantha
Posted on: 08th Sep, 2008 05:35 am
My ex boyfriend and I had 2 land properties together, one of the loans in under my name and the other loan is under both of our names. When we separated since we get along really well i let him keep my name on both loans however i sign off the tittle to him and he's made all the payments till today's date, last month he's been thinking of filling chapter 7 bankrupcy, my questions is can he quit claim deed the lands to me since the loans have my name on it and i take over payments before he goes and files bankrupcy?? thank you for your help
Posted on: 12th Sep, 2008 03:14 pm
welcome gladys.

yes, he can file bankruptcy chapter 7 prior to filing bankruptcy. it won't be considered as a fraudulent transfer as because the loans are not in his name. so, it's not that he's trying to protect the property from creditors. moreover, you're also willing to take over the responsibility for the loan payments.

thanks.
Posted on: 13th Sep, 2008 01:29 am
My in-laws are about to file bankruptcy. 6 months ago, they allowed us to start building a home on part of their property. If they deed us the land that our house is on, will it hold up thru the bankruptcy proceedings?
Posted on: 02nd Oct, 2008 10:16 am
Hi Kimberley!

Welcome to Forums!

If that part of the property is now in your name, then the filing of bankruptcy will not affect you. However, you should note that any transfer will be considered as fraudulent if within 1 year of the transfer, a bankruptcy is filed.

Feel free to ask if you have further queries.

Sussane
Posted on: 02nd Oct, 2008 10:42 pm
My sister's name is on the home title, but not on the mortgage loan. I might file for bankruptcy or foreclose on my home. Will her credit be affected? Can she file for a quit claim deed?
Posted on: 03rd Nov, 2008 11:46 am
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