quit claim

[4inga]

My husband is the only person on the loan for our home. I was going to file ch.7 by myself but we did a quit claim deed at closing to include me in case he died. How does this affect ch. 7?

thanks-

[HHM]

It means you have some ownership interest in the house, thus, your interest is an asset of your bankruptcy and you will have to exempt any equity in the house.

[4inga]

Thanks- that's what I thought shoot-

Let me ask you this- how do they base equity? I am going by the appraisal that was done on our home prior to closing. It valued the home $15000 above what my husband paid.

thanks-
hm

[HHM]

The value you would use is "current market value". So if the appraisal is more than 6 months old, its probably not that helpful.

Try to figure out what similar homes in your area are selling for, that will give you some idea of what the home is worth.

[Pinktiger]

It is my understanding that property held by tenants in the entirety (joint tenancy) is not counted in BK. I live in Missouri, which is not a community property state, and I know that makes a difference. When I filed, my house and cars are not considered because they are held jointly. At least that is what my lawyer tells me.
On edit: Also, we are reaffirming the house loan, so it is not included.

[HHM]

It is my understanding that property held by tenants in the entirety (joint tenancy) is not counted in BK. I live in Missouri, which is not a community property state, and I know that makes a difference. When I filed, my house and cars are not considered because they are held jointly. At least that is what my lawyer tells me.
On edit: Also, we are reaffirming the house loan, so it is not included.

Honestly, that shouldn't make a difference in BK, all joint tenancy and tenancy by the entirety deal with is right of survivorship. Technically, joint tenancy is different than tenancy by the entirety (TBE). The difference being, tenancy by the entirety is only for married couples.

Regardless of title and filing status a house held by TBE is still an asset of the BK estate. However, the value of the home can only be partitioned to satisfy joint debts of the married couple (joint tenancy does not have this feature). Thus, as a result, if any equity fell outside the exemption, it could only be used to satisfy joint debts. If you only filed on purely individual debts, then you are correct, a home held by TBE could not be touched.

[4inga]

Thus, as a result, if any equity fell outside the exemption, it could only be used to satisfy joint debts. If you only filed on purely individual debts, then you are correct, a home held by TBE could not be touched.

Oh I just love how I understood that. lol~ I just started a real estate class and that's what we're going over now.

I do know that Ga is not a TBE state. Only Tenants in Common and Joint Tenancy. How is the quit claim viewed as far as TIC or JT? Or does that matter- is only TBE safe?

thanks-
hm

[HHM]

Oh I just love how I understood that. lol~ I just started a real estate class and that's what we're going over now.

I do know that Ga is not a TBE state. Only Tenants in Common and Joint Tenancy. How is the quit claim viewed as far as TIC or JT? Or does that matter- is only TBE safe?

thanks-
hm

Frankly, its weird to have a quit claim deed at closing from one spouse to another. Usually, when your at the title company, you can select how you want the propert titled. So the question is put back to you, how is the property titled at the county recorder office?

[Pinktiger]

Regardless of title and filing status a house held by TBE is still an asset of the BK estate. However, the value of the home can only be partitioned to satisfy joint debts of the married couple (joint tenancy does not have this feature). Thus, as a result, if any equity fell outside the exemption, it could only be used to satisfy joint debts. If you only filed on purely individual debts, then you are correct, a home held by TBE could not be touched.

Thanks for clarifying that; and I believe the same is for other TBE property, such as cars. Also, anything that belongs to my husband solely and is his own property and not mine, is untouchable (if he is not filing). For example, he has some guns and some jewelry that he owned before we were married and/or were given to him by his brother when he died. Those are not touched by the BK if I file alone.

[4inga]

Frankly, its weird to have a quit claim deed at closing from one spouse to another. Usually, when your at the title company, you can select how you want the propert titled. So the question is put back to you, how is the property titled at the county recorder office?

I just called my realtor and she looked it up in taxes records and phewwww..... it hasn't been filed yet so it is still in my husband's name only. She seems to think that they didn't even do it yet. Am I correct to assume that it won't be an issue?

Thank you so much!
HM