Posted on: 21st Jan, 2007 12:25 pm
I am considering filing bk and was wondering if I have to take my boyfriend off deed in order to do so and then place him back on or can I just leave it as is. He is not on the mortgage just the deed.
Hi kgazaway,
Your creditor can only go after your home depending upon the type of bankruptcy you file. If it is Chapter 7, then the creditor may think of selling your assets and getting back the money you have taken out. But in case of Chapter 13, you will have to follow an alternative repayment plan to pay off your debts partially or wholly.
I don't think you have to take your boyfriend's name off the deed. He is not on the loan, only on the deed. And, if you don't file Chapter 7, then there's no need to remove your names from the deed.
If the equity in your home is exempt (that is, the home value is over and above the sum of unavoidable secured debts on property + exemption under applicable law + cost of selling the house), then the bankruptcy trustee will not make an attempt to sell your home to pay off the creditors.
Thanks.
Your creditor can only go after your home depending upon the type of bankruptcy you file. If it is Chapter 7, then the creditor may think of selling your assets and getting back the money you have taken out. But in case of Chapter 13, you will have to follow an alternative repayment plan to pay off your debts partially or wholly.
I don't think you have to take your boyfriend's name off the deed. He is not on the loan, only on the deed. And, if you don't file Chapter 7, then there's no need to remove your names from the deed.
If the equity in your home is exempt (that is, the home value is over and above the sum of unavoidable secured debts on property + exemption under applicable law + cost of selling the house), then the bankruptcy trustee will not make an attempt to sell your home to pay off the creditors.
Thanks.
If there is no equity in the property (current property value less sale costs less payoff balances on liens), then the trustee in chapter 7 will allow you to keep the property as long as you pay the mortgages.
However, if there is equity left in the property, you need to find out if there is any homestead exemption available and whether it is greater or equal to the equity.
If the exemption is equal to the equity, then you can keep the house till you pay off the mortgage. But if the equity is greater than the exemption allowed, then you can lose the home. In such a case you will be better off with Chapter 13.
I"ll suggest talk to an attorney and find out if your home is exempt property. No matter whether you keep the home or not, there is no need to take your boyfriend's name off deed. His credit score won't be affected until and unless he files bankruptcy.
However, if there is equity left in the property, you need to find out if there is any homestead exemption available and whether it is greater or equal to the equity.
If the exemption is equal to the equity, then you can keep the house till you pay off the mortgage. But if the equity is greater than the exemption allowed, then you can lose the home. In such a case you will be better off with Chapter 13.
I"ll suggest talk to an attorney and find out if your home is exempt property. No matter whether you keep the home or not, there is no need to take your boyfriend's name off deed. His credit score won't be affected until and unless he files bankruptcy.