Quit claim and chapter 13

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Icon Mini Profile warj





Joined: 04 Oct 2006

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Post Posted: Wed Oct 04, 2006 8:56 am    Post subject: Quit claim and chapter 13
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My husband filed Chapter 13 bankruptcy last year. His name is on the title for our condo, but not on the mortgage. Can he quit claim his "share" to me? Without going through the courts? Do I have to pay him for his share? My brother is also on the title.

Thanks!

Andrea
Matthes

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Post Posted: Wed Oct 04, 2006 10:53 am    Post subject:
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Hi Andrea,

If anyone quit claims his interest in the property to any other person then it is not necessary to pay for the transfer of property interest.

Transfer of interest by way of quit claim not involving payment of any kind is regarded as a gift from one person to the other.

Thanks
Matthes
Tesler

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Post Posted: Wed Oct 04, 2006 4:17 pm    Post subject:
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Hi Andrea,

If your husband's share in the condo falls under exempt property and is not taken by the bankruptcy trustee, then he has the right to transfer his interest in the condo in your name.

Tesler
Bushmiller

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Post Posted: Wed Oct 04, 2006 5:16 pm    Post subject:
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Hi,

Your husband must have claimed his share of the condo as exempt in the filed schedules at the time bankruptcy case was started.

If his equity in the condo had been less than or equal to the federal homestead exemption limit then it must have been listed as an exempt property.
Icon Mini Profile Caron
Caron
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Post Posted: Thu Oct 05, 2006 12:45 am    Post subject: RE: Applying homestead exemption in Chapter 13
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Hi Warj,

Your husband can quit claim his share only if he can protect the property. The homestead exemption can help him in this regard.

The exemption as stated above helps debtors to protect some or all of their home equity from creditors even if they file bankruptcy. In some states like Florida, the home may be totally exempt even if it is bought after the filing.

However, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 has restrictions on this homestead exemption. Filers who haven't stayed in a state for at least 2 years can only avail state exemption for that particular state where they have resided for most of the time for the 180 days before the 2 year period.

Bankruptcy filers can get exemption worth $125,000 maximum regardless of the exemption limit allowed by the state. But this is applicable only when the home is bought 40 months before filing or if the filer violates security laws or if he is involved in some sort of crime.

Thanks,

Caron.
Icon Mini Profile helping_user
helping_user




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Post Posted: Thu Oct 05, 2006 2:22 am    Post subject: RE: Quit claim after filing bankruptcy
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Hi Warj,

The person filing bankruptcy has to find out whether the homestead exemption he can get is equal to or greater than the home equity. If the exemption is equal to the equity in the home, the filer can keep the home as long as he pays the home loan. He can then quit claim his share to another person. But the lender may not allow for it until the debt is cleared. And, even if he agrees to it, he may ask the filer to transfer the mortgage to the grantee by novation.

However, if the equity exceeds the homestead exemption limit, then the filer may lose the home as it may be listed under non-exempt property while filing Chapter 13 bankruptcy. In that case, he cannot quit claim his share of interest in the property.

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Andy

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Post Posted: Thu Oct 05, 2006 2:59 am    Post subject:
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Quote:
Do I have to pay him for his share?

You may not have to pay for his share. But you will have to pay for the transfer of interest, that is, the cost of recording the deed at the Register of Deeds. Then there are also the fees paid to the attorney for preparing the deed. Then the notary public also should be paid.
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