Legal Question in Bankruptcy in California
bankruptcy chapter 7
Husband and I owned two homes in California in joint tenancyl. We tranferred title on one of the houses last year to myself (on our residence) and the other to him as we had planned to divorce, however, never went through with it. Houses had similliar equity values.
Now husband wants to file a 7 due to $200,000 business debts as an individual. But he transferred his property to the second lienholder with a Deed in Lieu of Foreclosure as he couldn't make the payments so no longer owns it.
Will trustee still consider my property as half his when determining eligibility for a 7 since marriage is still intact?
How can I protect my property from the bankruptcy as I am now petitioning for divorce?
2 Answers from Attorneys
Re: bankruptcy chapter 7
You should be OK ... unless his BK Trustee is greedier than most.
As long as it can be shown that it was your husband's intent to change the character of the property from community property to your separate property (which appears fairly easy to do), then that is what it is. And the BK Trustee cannot go after it as a fraudulent transfer because your husband received reasonably equivalent value in return (ie. you transfered the other property to him).
Re: bankruptcy chapter 7
Unless their is a final court decree for divorce with an assignment of assets the trustee has complete discretion to go after the property particularly since it had equity, your property is also up for grabs as a community asset, particularly because the second home will be considered non exempt. Call me once you decide to hire professional help.
Good luck
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
