Legal Question in Bankruptcy in Pennsylvania

I got the family home in the divorce decree. My ex husband plans to file for bankruptcy. His name is still on the mortgage (I have been making payments and will continue doing so) because I can't qualify to refinance the mortgage. Will his bankruptcy affect my home? Would a quit claim deed be of any benefit to me?

Asked on 4/10/14, 8:12 am

1 Answer from Attorneys

No. I don't know what kind of bankruptcy he is filing, but assuming he files bankruptcy under chapter 7 of the bankruptcy code, it will just mean that his liability to pay the mortgage is extinguished and the lender cannot go after him any more if you stopped paying the mortgage.

This should have been addressed in your divorce. Why is he still on the deed if the home was awarded to you? Did the husband not sign a quitclaim deed before?

If not, I don't know why he would be signing one now since he has filed bankruptcy. He will have to list his ownership of the home as an asset possibly. He needs to speak to his bankruptcy attorney - I don't know that he can quitclaim his share of the house to you at this date since you are now divorced. Bankruptcy trustees look at conveyances like this with scrutiny to make sure that there is no fraudulent conveyance. While you can explain it perhaps the timing is what makes it look bad. So the ex-husband needs to talk to his bankruptcy attorney.

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Answered on 4/13/14, 9:05 pm

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