If my spouse who I am filing a divorce from is wanting to file bankruptcy before our divorce is final, what effects will this have on me if I am still on the mortgage? How long does it take for a quitclaim deed to take effect?
2 Answers from Attorneys
Generally, the mortgage company doesn't care if you're in bankruptcy, divorce, or anything else, as long as they receive their payments every month. It shouldn't have any effect at all, assuming that the payments are current.
I assume that HE is being awarded the house. Until the house is refinanced (I assume that you're both "on the note"), you are still contractually liable for the house loan, even if the decree awards the house to him AND orders him to make the payments each month.
A quitclaim "takes effect" as soon as it's recorded in the County Clerk's office where the property is located.
Bankruptcies put "stays" on all lawsuit, including divorces. You will need the Bankruptcy Court's permission to continue with your divorce if your spouse files during the divorce.
A Quit Claim Deed will not absolve you or responsibility for the mortgage on the house. Deeds and mortgages are two entirely separate things.