Legal Question in Bankruptcy in New Hampshire

I have racked up serious credit card debt ($80k) on joint credit cards without my spouses knowledge and she has found out about it. She wants me to quick claim our three properties to her to "protect herself" or protect the properties while I file chapter 7 or chapter 13 bankruptcy. Is this a good idea for me or for the property and what happens if she divorces me anyway even after the cebt is cleared?

My wife does not want to be involved in paying any of this debt back and wants to know how to transfer all the debt to my name.


Asked on 9/25/11, 8:56 pm

1 Answer from Attorneys

1. Transferring the property in anticipation of filing bankruptcy would be considered an inside trade (preferential transfer) to be voided by the US Trustee as fraudulent under the Fraudulent Conveyances Act.

2. Any transfer in ownership could also trigger the obligation to pay off any outstanding mortgages on the properties.

3. If the credit cards are JOINT, then so is the debt, and putting the property in the name of one spouse will not protect the property. You can file bankruptcy and the credit card companies can still go after the properties because the debt is JOINT.

You are in a situation where you, as a married couple, have $80K in credit card debt. Divorce court cannot change Joint debt to Single debt - the rights of the credit card companies are not affected by a family court judge.

If you are unable to meet your payments as they come due, you should consider talking to a bankruptcy attorney.

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Answered on 9/26/11, 8:06 am


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