Bankruptcy and divorce

[dcotnoir]

What is the name of your state? New Hampshire

Ok,here is the long and short of my problem. I filed for divorce, the ex said she was not going to pay for her half of the mortgage. I had to file for bankruptcy. The bankruptcy is now final. I guess the house sold because she is asking me to sign an escro check the mortgage company sent to her, because both of our names are on it. I am wondering if a) I am entilted to any of that money as it was from the sale of the house, and b) if I have to sign the check at all since I claimed bankurptcy and gave up rights to the property, signing a quit claim deed. Per the divorce decree the house was to be sold and divided. Should the mortgage company re-issue a check in only her name if I am not entilted to any money. I don't want to have any tax implications if I do infact have to sign the check over to her... HELP!!!

[moburkes]

What month/year was your BK discharged? Your portion of that money MIGHT belong to your creditors.

[dcotnoir]

Last month, this year...

[moburkes]

Originally Posted by dcotnoir

Last month, this year...

Don't sign the back of that check just yet. You need to contact your trustee or your BK attorney. Those funds more than likely will be used to pay your creditors.

[dcotnoir]

The BK atty said the check has nothing to do with the bankruptcy************** I am so lost here....

[moburkes]

Originally Posted by dcotnoir

The BK atty said the check has nothing to do with the bankruptcy************** I am so lost here....

You'll receive better advice later. I'm looking it up right now. What chapter did you file?

[dcotnoir]

I filed Ch 7

[moburkes]

This is what I find in the code:

The trustee, a creditor, or the United States trustee may request a revocation of a discharge—
(1) under subsection (d)(1) of this section within one year after such discharge is granted; or
(2) under subsection (d)(2) or (d)(3) of this section before the later of—
(A) one year after the granting of such discharge; and
(B) the date the case is closed.

[LdiJ]

Originally Posted by dcotnoir

What is the name of your state? New Hampshire

Ok,here is the long and short of my problem. I filed for divorce, the ex said she was not going to pay for her half of the mortgage. I had to file for bankruptcy. The bankruptcy is now final. I guess the house sold because she is asking me to sign an escro check the mortgage company sent to her, because both of our names are on it. I am wondering if a) I am entilted to any of that money as it was from the sale of the house, and b) if I have to sign the check at all since I claimed bankurptcy and gave up rights to the property, signing a quit claim deed. Per the divorce decree the house was to be sold and divided. Should the mortgage company re-issue a check in only her name if I am not entilted to any money. I don't want to have any tax implications if I do infact have to sign the check over to her... HELP!!!

I think its really unclear what has happened here..

You say on one hand that the divorce decree stated that the house was sold and divided, but on the other hand you stated that you signed a quit claim deed and gave up rights to the property. You stated that she refused to pay her half of the mortgage which forced you into bankruptcy, yet obviously she had control of the property and effected the sale....which indicates that she was taking care of the mortgage, or it would have been a foreclosure rather than a sale.

The mortgage company issued a joint check for the escrow account, because you were both on the mortgage....however I do not understand why that wasn't dealt with in closing. Obviously your presence wasn't needed for closing.

I really think that you need to explain the sequence of events more clearly to get a decent response.

However....there are no tax implications here at all. Each of you had a 250k exclusion on any gain from the sale, and based on what you are saying its obvious that you didn't have that kind of equity**************nor is an escrow reimbursement subject to tax. An escrow reimbursement is a refund of post tax dollars.

However, as some of the others have explained, if you are actually due any cash, it may have to go to your bankruptcy trustee, unless that was already addressed in your bankruptcy...and it very well may have been addressed.

Again, explain things more clearly.

[dcotnoir]

1) Filed for divorce - the decree states that the "marital property is to be sold and divided"
2) ex-wife stated she would not be paying on the mortgage any more.
3) Filed for bankruptcy
4) Bankruptcy finalized by the trustee
5) house is sold and I am told to sign a quitcliam deed because of the bankruptcy
6) check is issued after closing of the house in both my ex-'s name and my own
7) she askes me to sign the check over to her
8) I don't know if I should sign the check due to the fact that the funds are tied to the sale of the house and I don't want the bankruptcy court coming after me if I technically "recieved half of this check"...
That is where my delema lies...

[dcotnoir]

Originally Posted by moburkes

This is what I find in the code:

The trustee, a creditor, or the United States trustee may request a revocation of a discharge—
(1) under subsection (d)(1) of this section within one year after such discharge is granted; or
(2) under subsection (d)(2) or (d)(3) of this section before the later of—
(A) one year after the granting of such discharge; and
(B) the date the case is closed.

I have absolutely no Idea what this means to me???

[Ohiogal]

Originally Posted by dcotnoir

I have absolutely no Idea what this means to me???

It means that if the trustee finds out you got this money and did not report it or if the money is a substantial amount even if you sign it over to your ex wife that your bankruptcy can be revoked. Which means you would still find yourself owing your creditors and facing the financial difficulties you were hoping to avoid. Even if your ex wife gets the entire check.