How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask socrateaser Your Own Question
socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 39187
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
10097515
Type Your Bankruptcy Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

own house with spouses free and clear, i have major cc debts

This answer was rated:

own house with spouses free and clear, i have major cc debts due to gambling, want to divorce him to spare him any more of my destructive damage, want to sign the house over to him, want to do chapter 7 for my cc debts......in what order is this done, and will my cc debts will discharged with chapter 7 .....can cc companies go after house if i quit claim it over to him
Hello,

If you divorce and the division of your property is made by the court at trial, then no creditor could reasonably challenge the final judgment of the Superior Court of Georgia. However, if you enter into a marital settlement agreement MSA, and the value of the property division appears to heavily favor your spouse, then the bankruptcy trustee can challenge the MSA as a "fraudulent transfer" intended to hinder, delay or defraud your creditors.

In general, the trustee must show that you did not receive reasonably equivalent value for the home as part of the settlement. This doesn't mean cash -- it means that the value of the property and debts that you receive are reasonably equivalent to the property that your spouse receives. There is case law that shows that 60% of fair market value will satisfy a bankruptcy court -- though I cannot guarantee this percentage in a future case.

But, that's the trick, and the needle that you must thread. If you can, then you can divorce, transfer the home, and escape liability in bankruptcy.

If you would like a link to the representative case law, please let me know and I will be happy to provide.

Hope this helps.
Customer: replied 4 years ago.


the question is basically, can i quit claim the house,l which is mortage free to my husband,l whom i intend to divorece, and then file chapter 7 which comes first


quit claim deed to husband


file for divorce


file for chapter 7 and if so how long after divorce because i do not want him or the house involved in my chapter 7 because of cc gambling debts and will the cc gambling debts be discharged by chapter 7 i live in georgia

the question is basically, can i quit claim the house,l which is mortgage free to my husband,l whom i intend to divorce, and then file chapter 7 which comes first


quit claim deed to husband


file for divorce


file for chapter 7 and if so how long after divorce because i do not want him or the house involved in my chapter 7 because of cc gambling debts and will the cc gambling debts be discharged by chapter 7 i live in Georgia

 

A: You would file for divorce first; then quitclaim the property to your husband as part of the divorce settlement; then you would file for bankruptcy. The trustee can try to avoid the property transfer if it occurs within two years of your filing for bankruptcy. I'm sure you don't want to wait that long, but if you file for bankruptcy sooner, than the trustee can at his/her option attempt to recover the property from your spouse. The trustee may decide not to pursue the property -- but if it's within two years of your filing Chapter 7, he/she can do so.

 

Please let me know if I can be of further assistance.

socrateaser and other Bankruptcy Law Specialists are ready to help you