Wife on Deed..Bankruptcy question?

[abisha]

My wife's name is on the deed of our home. I made sure it was because she's my wife :) and if anything happens to me I want the house to go to her ofcourse. It just so happens that she is hard hit by credit card debt and she may need to file for bankruptcy (if nothing else helps). I haev read chapter 7 and 13 law and I'm still not sure if she does file especially in chapter 7 scenario if the house is at risk because she is on the deed. Mind you we are never late on our mortgage payments..yet the her credit card debt is killing us..any help with this question?

[achimelech51]

This is going to depend on the amount of equity "she" has in the house (if "she" files bankruptcy separately, not a joint bankruptcy), and on the homestead exemptions available in your state.

In all likelihood, you will be able to avoid losing the home - BUT (caution) make certain that your wife engages an experienced bankruptcy attorney to guide her through this process, since this is a situation in which very simple clerical errors can easily cause the home to be lost, even when it needn't be.

[shaddoc98]

That's a question for your bankruptcy attorney. Each state has its own rules and there are Federal rules on top of that. All states and the Federal rules allow at least some equity in a principal residence to be protected in bankruptcy but the amount varies widely.

[kenway]

You should consult a real estate & bankruptcy attorney. They can further explain the chapter 7 and 13 bankruptcy process, and what will be included or excluded from the bankruptcy. Good luck!


Hope this could be of great advice!