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sj · Posted: Thu Apr 06, 2006 5:27 am Subject: Home in wife's name

The house we have has always been in my wife's name only. If I file for bankruptcy is there anyway they can take the house into account? I was told that because I live there and contribute to the monthly expenses the bankruptcy court could claim that I have a stake in the house and could include it in any liquidation of assets.

Posted: Thu Apr 06, 2006 8:23 am Subject:

you are typically allowed to claim a homestead exemption up to a certain amount for your house, however this can get somewhat complicatied and your best bet would be to discuss it with your attorney

Guest · Posted: Thu Apr 06, 2006 8:27 am Subject:

I didn't think I would need an exemtion because the house never was and is not now in my name. We are not filing for joint bankruptcy. Just me.All of the debts I owe are in my name. anyhting that was a joint debt has been paid. When I list my assets I didn't think I would have to include the house since I was never on the deed.

Posted: Thu Apr 06, 2006 9:05 am Subject:

no. you don't own the house. but if you make any payments within 90 days of filing bankruptcy, that money can be seized by the court regardless of who got it, and turned over to the trustee to pay creditors. if you fail to disclose all payments made to anyone during those 90 days, you could be charged with a crime.

Posted: Thu Apr 06, 2006 9:19 am Subject:

VLD,

Let through this one at you. When we financed our home through Wells Fargo (big mistake) they would only put my husbands name on the deed, and all the paperwork because I was not working. Can they legally do this? I live here to. Could this be discrimination where they wouldn't put my name on anything do to no job? When they were questioned about it, they stated that if something happened to my husband, I would lose the house. Is this true?

Posted: Thu Apr 06, 2006 12:08 pm Subject:

You're right, it's illegal discrimination on the basis of gender. Though, depending on how long ago that happened, you may not have any right to sue now, the Statute of Limitations is one year as I recall. But that probably doesn't prevent you from putting the house in both names now, and there's a good reason for doing so. That's called "tenants by the entireties" property, which means neither you nor your husband own the house, the marriage does, much in the same way as the shareholders of a corporation don't own the corporation's stuff, the corporation does. The big plus in that is that it cannot be subject to the debts of either of you individually.

Here's the thing: the mortgage (or deed of trust if you live in a lien theory state) probably contains a due on sale clause. But there's federal law that says that clause is not triggered by a conveyance of the property by one spouse to himself and his spouse. So your husband can execute a deed to you and him as tenants by the entireties. It would still be subject to the mortgage, but they couldn't throw either of you out (as long as you keep up the payments), if the other were to die.

You need a real estate lawyer for that conveyance, and to record the deed and stuff, but I'm pretty sure that'll work.

Posted: Thu Apr 06, 2006 12:48 pm Subject:

Thanks VLD. Once again your information is quite helpful. Keep up the good work.

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