Legal Question in Bankruptcy in California
Hello,
My former (ex) husband is planning to file bankruptcy. The divorce settlement awarded the home that I reside in to me. However, he is still listed on the loan as I cannot qualify to refinance. Would a quit claim deed protect me from his bankruptcy debtors? Are there any loopholes to get his name off the existing loan?
Thank you,
Pamela Huntley
1 Answer from Attorneys
A quit claim deed will not help, as the loan is still secured on the house, no matter who is on the deed. In fact, it may make things worse, as most mortgage agreements have an "accelaration clause" which means that if he transfers title to someone else (you), the loan will become immediately due in full.
That does not mean you cannot keep the house. Depending on his and your specific situation, and the type of BK he files (7 or 13), you may be able to keep the house. If he is filing with an attorney, that attorney should be able to advise him on that. If he's filing alone, you might want to speak with an attorney to see if/how to keep the house.
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