Legal Question in Bankruptcy in Illinois

pretection from creditor

should i divorce then file bankruptcy, or file bankruptcy singly and remove my name from the house and cars?


Asked on 10/19/07, 1:54 pm

1 Answer from Attorneys

Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: protection from creditor

Do not remove your name from the title of the house or car until after your bankruptcy is done. If you do so before hand and there is no divorce judgment requiring you to do so, the trustee can have the transfer deemed void and go after what would be your share of the property (if there is any equity in it).

Bankruptcy and divorce often go hand in hand, but keep in mind, if you are ordered to pay anything in the divorce judgment that would otherwise get discharged by a bankruptcy, your ex spouse can still get you to pay him or her back for that debt.

Also, if he or she is also thinking about filing, you should file before getting divorced so that you can file together. Once the divorce goes through you have to file separately, and I doubt either of you wants to be stuck with the other's debts due to only one of you filing bankruptcy, but that depends on the debts and if they're in both your names or if the debt is in only your name.

Read more
Answered on 10/19/07, 3:03 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Illinois