How Does My Bankruptcy Affect My Spouse

2010-09-09   minute read

Donna Carson


When you declare bankruptcy, you will swear a Statement outlining all of your assets. So with your name not on the home, that would not be listed.  And assuming that your name has not been on the home in recent years (IE:  you didn't transfer it to your husband recently), it won't be affected.  Even if you did happen to transfer it to him, it may still not be affected if it was your principal residence and had less than $40,000 total equity at the time. With respect to the other property, you would be listing your 1/2 ownership of it. Assuming it's not your residence, your Trustee will have to deal with 1/2 of the equity in the property.  So in your example of $8,000 value, and assuming their is no mortgage against it, $4,000 needs to come into your bankruptcy estate. Thay may be by your husband/you repurchasing it.   Or alternatively the property is sold and 50% of the net proceeds flow to your bankruptcy. Hope that helps. Give us a call when you are ready to schedule an appointment.  The initial consultations are free and can explain how the bankruptcy would affect you.

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