Expert: Terry Leeders - 3/27/2008

Question
Divorced 2 yrs ago. House released to ex-spouse w/quit claim but required to remove my name. Ex sp. unable to and now filing bankruptcy. Ex spouse willing to give house back with quit claim to me. How does this equate w/her bankruptcy and how does it effect me?

Answer
If she does it after Bankruptcy, then it won't be an issue.  If she does it before the case, she would have to disclose the transfer in the bankruptcy.  Unless she receives fair value for the transfer, the court could undue it to bring the home back in to the bankruptcy estate.  So, it would all depend on equity in the home and when it would be transferred.  I would recommend wait until the BK case is done, to avoid any problems.