Legal Question in Bankruptcy in California

I just filed for bankruptcy to discharge cc debt that was all in my name. The debt was incurred during our marriage for household expenses. I know that we get the benefit of a community discharge protecting all of our future community assets from these debts. My concern is our house. It is in my husband's name and was purchased before we were married. Can my creditors go after our house? We(he) are upside down on the mortgage by about $110,000. Can they still put a lien on it if it is secured by the mortgage company? Will we be able to avoid all of this by putting my name on the title, thus making it future community property?


Asked on 8/06/09, 9:49 pm

1 Answer from Attorneys
Larry L. Doan Law Office of Larry L. Doan

Even if they put a lien on the house, it's worthless for all practical purposes since the mortgage takes priority over any junior unsecured liens like this. If you're already underwater on the mortgage, there's no equity left for these creditors to attach to. In other words, if the house is short sale or foreclosed upon in the future, there's not even enough money from the proceeds to pay the mortgage company off (unless the market goes back up to the level of the Housing Bubble years, which I don't think it will for a long time).

Larry L. Doan

Note: The above response is provided for legal information only and should not be construed as legal advice, nor to create an attorney-client relationship, which can only be established through payment of consideration. We do not offer free advice except for the information provided herein on LawGuru which has been screened. If follow-up advice on your specific situation is desired, we offer a paid consultation in person if you are in the Los Angeles area, or by phone or email.

Read more
Answered on 8/06/09, 11:58 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in California