Legal Question in Bankruptcy in Alabama
Transfer deed under bankruptcy
My exhusband filed chapter seven on a mortgage that I am listed on. I have already done a quit claim deed to him. I am only on the mortgage not on the deed. He has moved away from the home and has had his creditor's meeting about two weeks ago. He is willing to deed that property to me so that I can catch up past due payments and the mortgage holder is open to this idea. However, no-one can tell me if this can legally be done. I've been told sure no problem - I've been told the property belongs to the B.R. courts and we need their permission and I've been told it can't be done at all? HELP! If I can't get the land deeded back to me - I'm not paying the mortgage and will obviously have to file bankruptcy myself.
3 Answers from Attorneys
Re: Transfer deed under bankruptcy
Your husband cannot merely deed the property over to you during the pendency of the bankruptcy - at least not without permission from the Court which may be a simple matter if indeed the property is not worth much more than the mortgage.
There may however be a variety of ways to get around this and you do need to take some action. For starters, your credit rating could easily get flushed down the tube if you are not careful. If you need further help, please do not hesitate to call me.
Sincerely,
Sterling L. DeRamus
205-458-1100
Re: Transfer deed under bankruptcy
When he filed bankruptcy, his interest in the property passed to the bankruptcy trustee. Therefore, you need to acquire his interest from the trustee, not from your husband. It's no longer his.
If his interest had any value, you will need to plan to pay the trustee.
If his interest had any value, it would be worthwhile for you to consult an experienced bankruptcy attorney.
Re: Transfer deed under bankruptcy
Contact a bankruptcy attorney.
If there is NO equity in the property, then the Bankruptcy trustee will do nothing. If there is equity in the property, then the Bankruptcy Trustee can sell the property to pay his unsecured creditors. You cannot do anything with the property unless you get permission from the Bankruptcy Trustee.
If you are on the mortgage, you are STILL on the mortgage until the bank or mortgage company releases you. Therefore, you are still legally responsible for the debt.
CONSULT A BANKRUPTCY ATTORNEY IN THE CITY WHERE YOUR EX-HUSBAND FILED HIS CHAPTER 7. You will need your ex-husband's case number, name and possibly his social security number.
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