Posted on: 29th Jan, 2009 01:23 pm
my former life partner & i bought a condo together. we have since split up and she has always said she wants to sign a quit claim deed to give up her rights to the condo as we only bought it together to get a better rate. what happens if she has to file for personal bankruptcy (as it appears she will need to in the near future)? since signing a quit claim deed does not transfer the mortgage debt to me only and we both are resonsible for the mortgage debt, will her filing for bankruptcy affect my credit?
hi barbs,
as far as i know, if she signs a quitclaim deed now, she will not be able to file a bankruptcy for at least next 24 months. if she does so, the quitclaim deed will be considered as a fraudulent one.
as the mortgage is in your name, i think your credit will be affected by her filing of bankruptcy. but once she transfers the property in your name, you may refinance it and she may then file the bankruptcy after around 2 years. you and your former partner can even consult a bankruptcy attorney and take his opinion regarding the matter.
thanks
as far as i know, if she signs a quitclaim deed now, she will not be able to file a bankruptcy for at least next 24 months. if she does so, the quitclaim deed will be considered as a fraudulent one.
as the mortgage is in your name, i think your credit will be affected by her filing of bankruptcy. but once she transfers the property in your name, you may refinance it and she may then file the bankruptcy after around 2 years. you and your former partner can even consult a bankruptcy attorney and take his opinion regarding the matter.
thanks