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  1. #1
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    Default Chapter 7 After Divorce

    My question involves bankruptcy in the state of: Georgia

    I am filing chapter 7, During my divorce my ex was awarded the family home, and I am to Quit Claim the deed to her. There is about 300k in equity in the home. Currently the Home is titled in my name only, also the mortgage is only in my name.

    She will not be able to refinance the home because she shows 20,000 income on a 350K note needed to pay off the mortgage.

    Will I be responsible to pay her the 300K equity after my bankruptcy is over? Or will the trustees exclude the mortgage from the bankruptcy if she continues to pay

  2. #2
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    Default Re: Chapter 7 After Divorce

    Quote Quoting Stalker30
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    My question involves bankruptcy in the state of: Georgia

    I am filing chapter 7, During my divorce my ex was awarded the family home, and I am to Quit Claim the deed to her. There is about 300k in equity in the home. Currently the Home is titled in my name only, also the mortgage is only in my name.

    She will not be able to refinance the home because she shows 20,000 income on a 350K note needed to pay off the mortgage.

    Will I be responsible to pay her the 300K equity after my bankruptcy is over? Or will the trustees exclude the mortgage from the bankruptcy if she continues to pay
    That is problematic and something that you need to discuss with your bankruptcy attorney ASAP. You may have a serious problem. This is something that you should have addressed long before you filed for bankruptcy.

  3. #3
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    Default Re: Chapter 7 After Divorce

    Quote Quoting Stalker30
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    Will I be responsible to pay her the 300K equity after my bankruptcy is over? Or will the trustees exclude the mortgage from the bankruptcy if she continues to pay
    These are two completely unrelated questions, so I'm not sure why you're asking them in the disjunctive, but let's start with a couple things.

    You wrote, "I am filing chapter 7." What does that mean. The filing of a Ch. 7 BK case is virtually an instantaneous process, so you either (1) have filed or (2) haven't filed and plan to file at some unstated time in the future. Which is it? If it's #2, when do you plan to file?

    Also, when did your divorce become final? You told us that you are "to Quit Claim the deed to her," which I assume means the divorce judgment requires that you transfer your ownership interest to your ex-wife (and does not preclude you from using a quitclaim deed). Correct? Why haven't you done this already? Does the divorce judgment provide that you are to receive anything in return? Or does it provide that your obligation to transfer your ownership interest is contingent on your ex refinancing in her name only? If not, and if the divorce judgment based on a voluntary agreement between you and your ex, why would you agree to transfer your interest without a requirement that she refinance?

    Subject to all of those questions, I can't conceive why you think you might be obligated to "pay her the [$]300K equity after [your] bankruptcy is over," in addition to transferring the title to her. Why would you think that might be a possibility at all?

    As for the second question, what do you think "exclude the mortgage from the bankruptcy" might mean? As long as you're obligated on the mortgage, you should list it in your schedule of liabilities and, if you get a discharge, you would be relieved from any personal liability to the owner of the mortgage. The mortgage will still remain as a lien again the property, however.

    I agree that you need to discuss all of this with your bankruptcy attorney.

  4. #4
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    Default Re: Chapter 7 After Divorce

    My divorce decree was final a couple days ago, The decree states I need to deed it to her within 30 days. I will do that, however she has 14 months to re-finance.

    I was ordered to pay 180,000 in business debt that is her business, and debt she had ran up. I cannot pay since I no longer have the business. My total debt is about 260,000. with a 350K mortgage as well.

    Should I wait to file BK? Until the re-finance is over, or she sells the house.

  5. #5
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    Default Re: Chapter 7 After Divorce

    Quote Quoting Stalker30
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    Should I wait to file BK? Until the re-finance is over, or she sells the house.
    No one here has sufficient info about your personal financial situation to answer this intelligently. Confer with your BK attorney (and, if you don't have one, get one).

  6. #6
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    Default Re: Chapter 7 After Divorce

    Quote Quoting Stalker30
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    My divorce decree was final a couple days ago, The decree states I need to deed it to her within 30 days. I will do that, however she has 14 months to re-finance.

    I was ordered to pay 180,000 in business debt that is her business, and debt she had ran up. I cannot pay since I no longer have the business. My total debt is about 260,000. with a 350K mortgage as well.

    Should I wait to file BK? Until the re-finance is over, or she sells the house.
    Is her name on that 180k debt as well as yours? If it is, your bankruptcy won't remove her responsibility for the debt, so you would be effectively giving it back to her, against the divorce decree. You really need to understand how each debt could or would contradict the divorce decree before you file for bankruptcy and risk the wrath of the divorce court judge.

  7. #7
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    Default Re: Chapter 7 After Divorce

    Quote Quoting Stalker30
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    Should I wait to file BK? Until the re-finance is over, or she sells the house.
    Sorry, despite the responses you have gotten, and with all due respect to those who have posted, what you should be doing is talking to a well qualified attny. What you should not be doing is attempting to figure out how to handle this situation by posting on the Internet.

    You have a complicated DR matter and that will have a direct impact on what you can and cannot do in a bankruptcy.

    The only advice you should be getting from these types of Forums is "Get off the Internet and talk to an attorney".

    Des.

  8. #8
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    Default Re: Chapter 7 After Divorce

    Quote Quoting despritfreya
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    Sorry, despite the responses you have gotten, and with all due respect to those who have posted, what you should be doing is talking to a well qualified attny. What you should not be doing is attempting to figure out how to handle this situation by posting on the Internet.

    You have a complicated DR matter and that will have a direct impact on what you can and cannot do in a bankruptcy.

    The only advice you should be getting from these types of Forums is "Get off the Internet and talk to an attorney".

    Des.
    "like button"

    I think maybe even two of them, a bankruptcy attorney and a divorce attorney.

  9. #9
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    Default Re: Chapter 7 After Divorce

    Quote Quoting Stalker30
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    My question involves bankruptcy in the state of: Georgia

    I am filing chapter 7, During my divorce my ex was awarded the family home, and I am to Quit Claim the deed to her. There is about 300k in equity in the home. Currently the Home is titled in my name only, also the mortgage is only in my name.

    She will not be able to refinance the home because she shows 20,000 income on a 350K note needed to pay off the mortgage.

    Will I be responsible to pay her the 300K equity after my bankruptcy is over? Or will the trustees exclude the mortgage from the bankruptcy if she continues to pay
    So you and your wife were supposedly adversaries in a divorce action by which: (1) She received the marital home with equity of $300K. (2) You received zilch, but were ordered to pay her personal debts of $180K plus an additional $60K. And now you intend to declare insolvency and being rinsed of all of your debts through a Chapter 7?

    No way Buster Brown! It reeks to high heaven as collusion and the trustee will be ripping your divorce decree to shreds! So have fun in trying to manipulate the federal bankruptcy laws via a fraudulently devised divorce decree.

    And please don't try to convince me that her profiting close to a half a million out the marriage - $300,000 equity and you absorbing $180,000 of her "business debts" - was not the result of collision.

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