Separation Terms vs. Bankruptcy Terms


#1

Firstly it is not “quick claim deed” it is “Quit Claim Deed”. Getting her to sign a quit claim deed takes her off the title and may terminate her marital interest. To fully terminate her marital interest in the house she needs to sign a separation agreement referencing the quit claim deed. This does not get her off the mortgage. The only way to get her off the mortgage is to refinance in your name. The letter may have weight, but it is not the correct vehicle to do that.

Once you separate any debt you incur after that date is your debt. Debt incurred jointly before them both of you are responsible for. If you can not agree on a way to split up the debt then the court will. That is you have to hire an attorney, file a lawsuit. Maybe you will get out of paying the credit cards, maybe you won’t. A judge would normally split it 50/50, all things being equal. This means you will have to battle it out in court. Divorces are really formalities that say the marriage is over. Separation agreements are where the real work gets done.

The problems with savings is that if you file for bankruptcy that is an asset that must be listed. Bankruptcy is not a get out of jail free card. If you have assets especially cash assets then they have to be used to satisfy some of the debt. Your home cannot be taken to satisfy debt other than the mortgage. If you keep paying the mortgage your home is safe.

Also bankruptcy attorneys usually work on a cash basis.

I don’t know alot about bankruptcy. It is not as easy to do as it use to be. Look here: bankruptcyinformation.com/nc.htm


#2

If the debt is discharged in bankruptcy then the creditor will not come after you, but it will show up on your credit report. If they do come after you for payment you may be forced to pay but you can sue her in civil court to try and get the money back.

Once the bankruptcy has been filed nothing related to property can be done in civil court until the bankruptcy has been completed. The bankruptcy trustee can help you with these issues and you should contact the trustee as soon as you know who that is.

P.S. Please feel free to bring up this or any other topic on our live call-in show every Wednesday at 11:00 a.m. EST. Visit radio.rosen.com/live for details

Helena M. Nevicosi
Attorney with Rosen Law Firm

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#3

First I know that this law firm does not deal with Bankruptcy as I’ve asked a question about that topic and was told to seek a Bankruptcy attorney. However, my next question is which takes priority the judgement of the Divorce decree or Bankruptcy decree(my ex wife is filling for Bankruptcy). Some of the credit card debt is in both our names though I did not charge anything on these cards. If my Divorce decree states that my ex wife is to pay these debts,but the Bankruptcy court says she is exempt then what takes priority?

  1. My wife agrees to give me the house,but there was no guick claim deed signed by her-just a notarized letter stating she agrees to this and sharing the debts(which led to question 1. above). Will the judge in my Divorce hearing be able to grant me full possession of the house without the quick claim deed signed and allow all joint debts go to her. These debts are credit card debts about 40k or so I had nothing to do with,but unfortunately my name is on the cards.

  2. This may also be a Bankruptcy question,I am not sure. I receive a fixed disability income. Is my home wich I am paying a mortgage on exempt from Bankruptcy and how about my savings that is a result of my disability payments? I’ve heard of a Homestead exemption. What is that?

Thank You
Eric
Well thats enough for now. Maybe someone can direct me to a website that deals with Bankruptcy.
P.S. I’ve talked with a Bankruptcy attorney and he said that he only files Bankruptcy claims and does not represent a party that is not filing for Bankruptcy. I also got this message by a telephone conversation from another Bankruptcy attorney. Pleas help me with some answers.