What will happen in a post Divorce Bankruptcy? 5 Answers as of April 07, 2011

My ex-wife is thinking of filing for a chapter 7 bankruptcy. Two of my homes still have her name on them ( she signed quit-claim deeds and filed them with our county). In the divorce all 4 homes were given to me because of debt owed on them. Because of my financial problems the 2 houses still in her name are going to be foreclosed on in the near future. So, what does this mean to us? I want to be out from under these homes. She has said that the courts will come after me to pay her debts. Her debts were from credit cards, in her name, she ran up after the divorce. Also, I own timeshares, will the mortgage companies try to take these away from me? Is my new wife responsible for any of these debts if nothing is in her name? She wanted it this way because of these problems.

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Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
The answers to your questions are very state specific. If you live in a Community Property State like WA, contact me and I can advise you.
Answer Applies to: Washington
Replied: 4/7/2011
Law Offices of Michael T. Krueger
Law Offices of Michael T. Krueger | Michael Krueger
This has multiple questions involved. I will try to address them all by pointing out that debt incurred during the marriage is considered community debt since California is a community property state. This means that you could be liable for up to 50% of the debt that you are responsible for during the marriage. The credit card companies cannot come after you for debt incurred by your ex-wife after your marriage.
Answer Applies to: California
Replied: 4/5/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
This is a complicated scenario and you should seek an attorney for specific advice about what would happen in your specific circumstances. There are some significant legal cases in this area of the law. However, it is possible that your wife could come after you for indemnification for this debt, you may be able to discharge all of it in Bankruptcy including the amount she claims you owe to her, and if the mortgage companies sue to collect the debt all of your assets are at risk. See a lawyer.
Answer Applies to: New Hampshire
Replied: 4/5/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
I do not know what state you are in. Some mortgages are "non-recourse loans." This means the lender can not come after you when their is a foreclosure for the deficiency. The rules on this vary in the different states. If the mortgages are "recourse loans" the lender can come after you for the deficiency balance. You should consult with an attorney about this.

If her credit card debt is post dissolution of marriage, the credit card companies can not come after you if she files for bankruptcy unless there something odd in the dissolution of marriage judgment.
Answer Applies to: California
Replied: 4/4/2011
Ferguson & Ferguson
Ferguson & Ferguson | Randy W. Ferguson
You need to sit down with an attorney and go over each question. You have too many issues to answer. If you are in North Alabama give us a call. Otherwise, sit down with a bank and attorney and go over each question.
Answer Applies to: Alabama
Replied: 4/4/2011
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