Quit Claim from Divorce

[musclecar75]

Hi everyone,

My new husband had a mortgage thru Citimortage with his then wife. When they filed divorce, the property went into foreclosure. He quit claimed his interest in the property, and his ex-wife received a loan modification through Citi.

My question is, he might file chapter 7 bankruptcy.....will he be able to list this mortgage as a creditor, since his name is still on the loan, even though he quit claimed his interest in the property? How would this effect his ex-wife? Could this effect her current loan through Citibank?

[Pandora]

In the divorce decree did it state that the spouse had to refi the house by a certain amount of time in their name only - or the house would have to be sold? Something alone those lines?

Here is Title 11 (BK Code) Section 548

http://www.law.cornell.edu/uscode/ht...8----000-.html I think part (e)(1) may apply but I'm sure someone else will pop on and verify.

[musclecar75]

The divorce decree didn't state anything other than she keeps the house.

Thanks for the link, I will make sure to read it.

[musclecar75]

I started reading the link you provided and do have another question.....so is there a time frame involved before he can file bankruptcy? Seems like that is one of the things being said in the link to Cornell.

Thanks for your help!

[despritfreya]

If the divorce decree gave her the home and he quit claimed the property as required by the divorce court there is no problem. The transfer must be listed on the Statement of Financial Affairs with a natation that it was pursuant to the divorce decree. If the transfer was not part of the divorce decree and there is/was equity in the property then maybe there is a problem but it is the ex-wife's problem not your husband's.

The transfer of the property did not take your husband off the loan therefore the creditor should be listed - and I would list the creditor on Schedule F. Citi is a secured creditor but - Citi is no longer secured by property owned by your husband therefore it is an unsecured creditor (even if the California anti-deficiency statute applies - better safe than sorry) as it relates to your husband - at least that is the way I handle such matters. It doesn't really matter so long as the creditor gets notice of the bk.

By the way - Citi won't care about the bk so long as it is getting paid and the loan modification has been finalized.

Des.

[musclecar75]

If the divorce decree gave her the home and he quit claimed the property as required by the divorce court there is no problem. The transfer must be listed on the Statement of Financial Affairs with a natation that it was pursuant to the divorce decree. If the transfer was not part of the divorce decree and there is/was equity in the property then maybe there is a problem but it is the ex-wife's problem not your husband's.

The transfer of the property did not take your husband off the loan therefore the creditor should be listed - and I would list the creditor on Schedule F. Citi is a secured creditor but - Citi is no longer secured by property owned by your husband therefore it is an unsecured creditor (even if the California anti-deficiency statute applies - better safe than sorry) as it relates to your husband - at least that is the way I handle such matters. It doesn't really matter so long as the creditor gets notice of the bk.

By the way - Citi won't care about the bk so long as it is getting paid and the loan modification has been finalized.

Des.

Thanks, that was very helpful!

One last question.....my husband quit claimed his interest in the property voluntarily, before the divorce was actually filed......so when the divorce was filed, it showed that his ex-wife was the owner of the property. Will this make any difference? Doesn't seem like it, but thought I'd ask.

Again, thanks for your help!