How can a spouse prevent filing bankruptcy? 19 Answers as of December 14, 2011

Unfortunately, your scenario does not make sense because if Spouse A does not have any debt, then spouse A does not need to file bankruptcy. Regardless, transferring assets from one spouse to another prior to a bankruptcy is NEVER a good idea. Hire an attorney who can provide you with better planning.

Transferring property before filing is a transfer that can be undone by the trustee. Its also a crime.

Every person has a constitutional right to file bankruptcy which cannot be prevented.

Simply put, there is no way to get Spouse A off the hook for the mortgage in your example. Even if Spouse A (no debt except perhaps the mortgage, and on title to the house) transferred the home to Spouse B (apparently liable for multiple debts and is also on title to the marital residence), that transfer would be undone in the event of a bankruptcy. Even worse, you are proposing a *fraudulent transfer* that is impermissible under both the Illinois enactment of the Uniform Commercial Code and relevant Bankruptcy law. But there may be a way to accomplish your goals: you just need to speak with a creative and competent lawyer.

It is not necessary for both spouses to file bankruptcy together. If one files alone it still subjects all of the community property to the bankruptcy, even though the other spouse doesn't file. The biggest issue in your case is the amount of equity you have in your home. If it is less than the exempt amount, then the home will not be subject to sale by the bankruptcy trustee. I do not have sufficient information to give you an answer. Quit claiming the house will have no effect, one way or the other, as far as the bankruptcy is concerned.

You can't do that. It is considered Fraud.

Sorry. Executing a quit claim deed to your husband or wife does not relieve you of liability for a mortgage. No action by 2 parties to a contract can void the rights of a third party. For example: If you divorce and the Court orders the wife to be responsible for the home mortgage, it will not stop action against the husband if the wife does not pay the debt. Once you have signed for liability on a debt, only the lender can relieve you or discharge your liability on that obligation. That is unless you file bankruptcy then for a secured claim, such as a mortgage, if you turn over possession of the home, the persons who are liable for payment of the mortgage debt have no ongoing responsibility for the mortgage payments. That only applies to pre petition payments, not post petition payments.

You cannot prevent a spouse from filing bankruptcy. You should talk to an attorney before doing serious and dangerous things like quit claiming property. It might seriously affect you and your spouse depending on the situation.

You can't stop it. The transfer could be set aside by the trustee.