Chap 7 wife files/husband does not

[bradfh]

What is the name of your state?What is the name of your state?Washington DC

My wife and I purchased a home last November. We are both on the deed of the property. The mortgage note is in her name only, but I make the payments. My wife has been unable to find work and has about $80,000 in credit card debt. I also have been paying these bills. My wife is considering filing chapter 7. We have about $100,000 equity in our home. My idea to protect the equity in our home from her creditors is to ‘quitclaim’ my wife off the deed of the property before she files chapter 7. She still we be solely on the mortgage note. My questions are these: (1) Does the fact that we are married and that I make enough income to pay the mortgage and her bills affect her ability to file chapter 7? (2)Since she will be off the deed but the mortgage will still be in her name only and on her credit report, will she be seen by the court as an owner of the home? (3)She may do a refinance and take cash out to pay me for the bills I have paid, before she does the chapter 7. How will the court view her taking cash out before the BK filing? Thanks in advance for your help.

[AttorneyOney]

I suggest that you not have her do anything (refinance, quitclaim to you) with the house until after you consult a local attorney. I also suggest that you read section 548 of the bankruptcy code very carefully. I think there is a strong possibility that the trustee would be able to undo the transactions in a way that would leave you worse off, or that he could obtain dismissal of your case under section 707(b). [Go to [url]http://www4.law.cornell.edu/uscode/[/url] and drill down through title 11 to find these sections.]

Your attorney will want to see the deed. If you and your wife are tenants by the entirety, there may be statutory protections that will help you. There may also be homestead rights that you already have or can easily obtain before filing.