Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Hello,Different contributor here. Please permit me to assist. There is no reason to quitclaim the property at this time. If you have any equity in the property, then the quitclaim will destroy your homestead exemption and you won't be able to keep the property -- the bankruptcy trustee will be able to seize it and sell it to pay your unsecured creditors. And, if you have no equity, there's no reason to transfer the property to your spouse's father, because you would be transferring nothing of value. Your father-in-law would get nothing from that transfer, and by making the transfer, the bankruptcy trustee will start wondering if you're playing games and hiding assets. A Chapter 7 can be completed in about 120 days. If father-in-law wants to make some payments toward the mortgage while your bankruptcy is ongoing, he can just mail a check to the loan servicer. Hope this helps. NOTICE: My goal here is to entertain while educating the public about the law. I hope my answer is useful and informative to you. During our conversation, the website may ask you to rate my answer. If you rate my answer lower than the middle rating, then the website retains your entire payment, and I receive nothing. It is entirely your choice as to how you rate my answer. However, because your payment to me is in the nature of a donation/gift, rather than as compensation for any services rendered, you are entitled to know how your rating affects the final distribution of your donation. If you need to contact me again, please put my user id at the beginning of your question ("To Socrateaser"), and the system will send me an alert. Please Click the following link for IMPORTANT LEGAL INFORMATION. Thanks and best wishes!