House


#1

What is a deed in lieu of foreclosure?
Can an x spouse file for bankruptcy even if their is $75,000 in equity? Will their bankruptcy affect my share of equity? We are divorced over a yr now.
We have not gone to ED yet, but X got themselves in a lot of debt after sep & divorce.


#2

A deed in lieu of foreclosure allows a homeowner to sign a deed over to the bank for the property in lieu of the bank foreclosing on the property. Essentially the bank takes ownership and the original owner avoids foreclosure.

I cannot speak to whether your spouse is eligible to file for bankruptcy; that question is best directed at a bankruptcy attorney. The debt that your ex spouse incurred post separation and divorce is not marital debt, it is his own separate debt.


#3

Thanks Lindsay,

I have more important questions -
1.If X files for bankruptcy, and their is a stay as you mentioned on ED, then what happens to the stuff that still needs to be divided (furniture , retirement, money)?

  1. We have 4 vehicles, 3 are in his name, one joint all purchased during time we were married. What becomes of this? X has one of the vehicles
    the other 3 are here (for 3 yrs now) All paid off except one X is driving, will I lose the car that I drive & the other because titled in X name although marital?

  2. If X does file Bankruptcy, and meanwhile I take X to court for show cause, can the judge order him to do anything (continue to pay pss & mortgage plus back pay pss) or is a judge at a loss too? Can a judge order X to sign over title of car or deed to house to me during this hearing?

I’m so thankful for any answers, I’m going to have to pursue my interests pro-Se , I have nothing to sustain me for an attorney.
4. So since I’m so depleted of funds, can I sell some of my furniture & belongings to raise money for a bankruptcy attorney & possibly a pymnt for mortgage?


#4

The items that are subject to distribution will essentially be frozen - the stay simply means that no action can be taken with regard to those items. So once bankruptcy proceedings have started, a family court judge doesn’t have the authority to bypass the stay and distribute these items. The stay prevents you from filing an ED lawsuit against your former spouse, proceeding with a lawsuit for ED previously filed, and even attempting to enforce an ED judgement. You will have to receive stay relief from the Bankruptcy Court before any of the aforementioned actions can be taken.

I cannot advise you on bankruptcy related issues, including which items will be affected by the bankruptcy; these questions are better directed at a bankruptcy attorney. However, it sounds like your ex husband has not actually filed, and has merely threatened to file. I would go forward with your ED claim as there is a chance he won’t actually file, and you have marital property that needs to be distributed.

With regard to selling assets to pay for an attorney, if you sell marital property it can affect the ED claim. The amount you were owed may be offset by the equity you took from the marital assets. If you liquidate separate property (i.e., furniture you had prior to your marriage) it should not affect your ED claim.


#5

Thank You soooo much!
Your awesome!!
Rosen Law Firm ROCKS!!