Expert: Mark J. Markus- California Bankruptcy Attorney - 7/7/2009

Question
My boyfriend & I have a mortgage on a home we both live in. Last year I had him sign a quit-claim to take his name off title.  He wants to file bankruptcy since he has a lot of credit card debt. I do not want it to affect me in regards to the house. If he files bankruptcy on his credit card debt, what do I need to do to make sure the bankruptcy does not affect my credit or my home?

Answer
Well, if there was equity in the home at the time the quitclaim was recorded, you better prevail on him to wait at least 2 years from the transfer date before filing his bankruptcy.  In California, the lookback period for such fraudulent transfers is actually 7 years, but there's a chance that once it gets past 2 years, the Trustee in the bankruptcy case won't "notice" it.  Otherwise, you can expect to be sued by the Trustee in his case (assuming he's filing a Chapter 7) to recover the value of the transfer.

As for your credit, I don't see how his filing bankruptcy would affect your credit unless you owe on the debts.

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