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Divorce and Quit Claim, Mortgage modification prior to CH 7 BK

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    Divorce and Quit Claim, Mortgage modification prior to CH 7 BK

    I live in KY. My ex wife and I recently performed a "quit claim" on our house (worth $127,000) to her. We divorced officially on Oct of 2011. The bank modified the mortgage to the tune of $1 on Dec 20, 2011, and my name was removed from the mortgage as well (mortgage adjustment). So I have zero claim to the home.

    Should I list this transfer on my BK Schedule(s)? I don't want to run afoul of the trustee. Again, we're officially divorced and I have no interest or stake in the home. Is this fraud? How can it be? It's all legal....

    From the web "It is generally unwise to attempt to hide the transfer of property from the bankruptcy court even if that transfer was performed using a quitclaim deed. As noted above, if a quitclaim transfer of property was executed properly and filed with the county, it is considered a binding legal transfer and is available for viewing in the public record. A bankruptcy court can potentially identify through the public record any property that you have that you have failed to list in your bankruptcy. Such an attempt to hide assets and deceive the bankruptcy court can result in your entire bankruptcy being thrown out."

    So how to properly report this asset that I no longer own? I have the quit claim deed signed by a judge, and the mortgage modification agreement signed by the bank. It is filed with the county and legal.

    Divorce decree stated I was to quitclaim the house to her.

    #2
    Thinking about posting the following to my "Statement of Financial Affairs"

    NAME AND ADDRESS OF TRANSFEREE, DESCRIBE PROPERTY
    RELATIONSHIP TO DEBTOR

    Quit claim deed pursuant to divorce decree

    DATE

    3/8/2012

    DESCRIBE PROPERTY
    RELATIONSHIP TO DEBTOR TRANSFERRED AND VALUE RECD

    Home at XX Road $132,000. No equity in property.

    Comment


      #3
      Was the Quit Claim ordered to be done in the divorce decree?

      Comment


        #4
        Originally posted by HHM View Post
        Was the Quit Claim ordered to be done in the divorce decree?
        Yes

        Comment


          #5
          Yes, the disclosure needs to go on the State of Financial Affairs, put in as much explanation as necessary so someone not knowing anything about your situation will be able to understand what happened.

          I can't comment on whether your proposed entry is sufficient for your district, sorry.

          Comment

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