Legal Question in Bankruptcy in New York

I live in NY....I am married and own a home. The deed is in my name solely....Husband has huge credit card debts of which I am not an authorized user of the cards or have any liability to repay as I am led to believe....

Can husband claim bankruptcy to relieve credit card debt without affecting house? We are being told that his equity in the house makes bankruptcy not possible...but his name isnt on the deed....??


Asked on 1/29/11, 12:14 pm

2 Answers from Attorneys
Robbie L. Vaughn, Esq. The Law Firm of Vaughn & Weber, PLLC

"We are being told that his equity in the house makes bankruptcy not possible" By whom?

I suggest you and your husband consult with a knowledgeable bankruptcy attorney. Good luck!

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Answered on 2/08/11, 5:29 pm
Andrew M. Doktofsky Andrew M. Doktofsky, P.C.

Generally, if the spouse filing for bankruptcy is not on the deed for the marital residence, then the bankruptcy filing would not have any effect on the house. However, if the filing spouse owned the property at one point and transferred it to the other spouse, it could be considered a fraudulent transfer. Also, if the filing spouse had paid for the down payment or otherwise invested money in the house, a bankruptcy trustee could potentially claim an interest in the property.

As of Jan. 23, 2011, the homestead exemption in New York was increased to $150,000 per debtor. This would allow most homes to be exempted. However, this does not affect your situation because your husband is not on the deed.

Please contact my office directly if you would like to discuss your situation further.

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Answered on 2/09/11, 9:08 am


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