Legal Question in Bankruptcy in Illinois

Ref ex filing bankruptcy and myself purchasing his house

After our divorce, my ex bought me out of our house, and refinanced to remove my name from the mortgage. He has since gotten himself into serious debt due to a gambling problem and is considering filing bankruptcy. I would like to purchase the house back from him before he loses it. But I do not have the down payment yet and would like to rent it from him until I do. My children want to live in the house very much. He is agreeable to this but doesn't know if the court would allow him to rent the house out to anyone, or will they force him to sell it? I don't want to move into it and then be forced to move again. He hasn't asked a lawyer this question yet and I'm tired of waiting for him. Please help and thank you very much.


Asked on 3/23/98, 12:07 am

1 Answer from Attorneys
Jonathan Shimberg SHIMBERG and CROHN

Buying house from about to be bankrupt

It is possible to buy your formee spouse's home, even if he is about to go bankrupt. However, you have not given me enough information. We have no idea how much equity your former husband has in the home. Illinois provides for a $7,500 exemption. If the equity is more than that then you may have to be careful about the structure of the sale. It entire tranction should be analysed and timed carefully. If he is taking so long, is he pulling your leg however. Is he current in child support, for example and using his problem and supposed desire to sell the house to you as a basis for not paying child support.?

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Answered on 4/02/98, 10:01 am


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