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Quitclaim prior to bankruptcy - How does it affect?

Posted on: 05th Jan, 2006 03:29 am
my husband is in deep debt and we have a house together. he is planning to file for bunkrupcty but before doing that he is planning to do a quit claim on our property to me. i have excellent credit and i dont want to file for a bunkruptcy. is it good move for him to do a quit deed then fiile for bunckruptcy? how will it affect me?
Hi Irenedimapilis,

I don't see any reason why your husband wants to sign the deed. If he has a mortgage, then signing such a deed will not relieve him from paying the unpaid loan balance. This also depends on the type of bankruptcy he files. He may get rid off all his debts through Chapter 7 and in that case, signing the deed does not make any sense. But he will definitely have to pay a part of his debts through Chapter 13.

But I would suggest that your husband consider a few ways by which he can avoid filing bankruptcy. And, if he does not have a mortgage then he can quit claim the property to you so that he does not lose his house.

God Bless You.

For MortgageFit,
Posted on: 05th Jan, 2006 04:14 am
It is not a wise decision on the part of your husband to quit deed the property before filing bk as any transfer of property within one year of filing bk may be seen as a fraudulent attempt and the trustee may reverse that transfer.

I shall advise you and your husband to consult a bk lawyer before making any transfer.

Posted on: 05th Jan, 2006 11:22 am
My ex-husband of 10 years is in deep financial trouble. In fact he is in serious danger of losing his business and a home he purchased 5 or 6 years after our divorce. I am holding a quit deed for a home we purchased together prior to our divorce. In the divorce settlement I was awarded the property but have never refinanced the loan which was in both our names. I have made all the payments since day one. My question is, Can his creditors come after my property to settle his indebitness? If so, What can I do to protect myself?
Posted on: 13th Jan, 2006 01:51 pm
Hi Christi,

I feel sorry for your ex-husband's condition. But I am surprised to know that you didn't refinance the loan in your name.

It is always better to sort out any joint debts at the time of divorce under the divorce attorney.

In your case, though I don't think it is going to be a problem. I would like to know if your husband has completely transferred his interest in the home to you.

If he doesn't have any right in the home you are talking about then the creditors should not come to you for it.

You are paying for the joint debt that you have and so far anyone of you continue to pay it off, there is no problem for your or your property.

I shall advise you to consult your lawyer to get him all the details and keep yourself safe.

By the way, your post subject states - "Quit Claim Deeds and Bankruptcy". Is your husband planning to file bk?

Posted on: 13th Jan, 2006 02:07 pm
I purchased a home in my name and added my husband to the quit deed later. My husband is now filing Ch 7, how does this affect my home? Does he add it to his bk when the loan is in my name?
Posted on: 12th Sep, 2006 06:33 pm

The bk filing may not affect your home if it is an exempt property. Laws regarding exemption vary from state to state. There are 16 states allow debtors to elect the bankruptcy code exemptions. In such states, debtors are allowed to make a choice between federal exemption and state exemptions. You may have to consult a lawyer for the list of exemptions available to you.


Posted on: 12th Sep, 2006 08:52 pm
My husband and i are seperating, and he is filing for divorce. My name is on the deed but not the lean on the house. Could i sign a quit deed and remove my name before he goes bankrupt?
Posted on: 22nd Oct, 2007 09:37 am
Hello Amy,

You can take out your name from the deed by signing a quit claim deed before bankruptcy. Make sure to record the deed at the county clerk's office so that it becomes valid.
Posted on: 23rd Oct, 2007 02:14 am
Three years ago I signed an agreement with my cousin to purchase a house he was renting out at the time. We agreed to 40,000; notarized the agreement; my mother lives in the home; in December 2007 I will have made my final payment. He called me yesterday to tell me his lawyer misrepresented him earlier this year when he filed bk; so he now has to convert his Chapter 13 into a chapter 7 and the judge he saw told him I should get a quitclaim deed before bankruptcy on the house. I'm sure the judge did not understand my cousin owes 35,000 on the refinanced house, and I have paid nearly 40,000 to him that he has not given the mortgage company. He ownes the home he lives in and the property we were to exchange, he said both are in jeopardy d/t misrepresentation by his lawyer that he claims he is suing also. I want the home I bought, but I do not want to be responsible for any monies that he owes on the home. I have paid all of the taxes for the past 3 years as well as the upkeep. What a sticky situation; he wants me to do a quitclaim today (11/29/07) before Friday (he won't clarify why before friday.
Feeling not so smart in Nebraska -Tina
Posted on: 29th Nov, 2007 05:44 am
My ex husband and I were in a chapter 13, we were granted the divorce in January this year. Since then the chapter 13 has been dismissed (Oct 07) and he wants to file chapter 7. The home was granted to me once the chapter 13 was complete. The divorce papers say that I have 6 months to refi... Can I do a quick deed to save the home from being included in his chapter 13? Currently it is in both our names.
Posted on: 03rd Dec, 2007 09:11 am
Hello Tina,

Sorry for the delayed response.

Is it so that you are already on the title and your cousin wants you to sign a quit claim so that he may include the property in bk?

If you already have ownership rights, then you should not sign a quit claim to handover the property to him.

The mortgage is still in his name and if there's default in the monthly payments, the lender could foreclose on the property.

Do you have any document to prove that you have already made the payments?

If your cousin wants to transfer the ownership rights to you now before filing Ch 7 to save the property, then I'm sorry to say, that is a fraudulent conveyance and you could also face trouble due to this.

I think it will be better if you consult an attorney and take his advice.
Posted on: 04th Dec, 2007 02:19 am
Hi Taylor,

I think your assets and properties are not included in chapter 13.

Sometimes, transferring ownership rights before filing bk is considered illegal and may create complication. It is better to avoid that.

Consult an attorney and take his advice. I think that will help.
Posted on: 04th Dec, 2007 02:32 am
My sister and I just found out that my mom (who recently had a stroke) has max out all of her credit card. My dad didn't know this. She owes a total of $48000.00. Their home is free and clear. Should I get a quick deed switched over to my sisters and I, just incase they cannot pay those credit cards off?
Posted on: 13th Mar, 2008 01:56 pm
Hi Joann,

Welcome to our community forums.

It's sad to hear about your mom's illness. I hope she gets better soon. :)

What usually happens is, when you cannot pay off credit card debts, the creditor may file judgment against you and then place a lien on your home. The lien should be satisfied if you sell or finance your home. So, in this situation, if your mom quitclaims, it might be regarded as fraudulent transfer and hence the creditor may file a lawsuit against you.

It's better that your mom consolidates the debts through debt consolidation program or debt settlement. I know of one such community at "" which helps people get out of debts through consolidation, settlement etc. You can contact them and find out which is the right option to get rid of the cc debts.


Posted on: 13th Mar, 2008 11:50 pm
Jessica, thanks for your information on this situation. My parents house is only in my dad's name. However he has some small debts as well. What would happen if I have a quick claim deed filed and paid off his debt only. What would happen if we did nothing to satisfied mom's debt? I really don't want to do this that way, but if worse comes to worse.
Posted on: 14th Mar, 2008 09:08 am
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