Q: My ex-husband is declaring chapter 7 bankruptcy 5 years ago we did a quit claim deed on my house in Arizona am I at risk
we divorced in 2014 refinanced the house just before the divorce so I could afford the mortgage on one income. I have paid the mortgage this whole time and owe less than 30,000 dollars.
A:
The reach-back by Bankruptcy law for "fraudulent conveyances" (transfers of assets for less than fair market value) is two years. I'm in PA, and the PA state law for like transfers is four years (which a bankruptcy trustee is entitled to use).
Your question seems to hinge on 1) whether the law of AZ reaches back to your deed, and 2) whether that transfer (of your ex-spouse's interest), being a property division or support part of the divorce, was for fair value at the time of the transfer.
My gut sense is that you're ok with the transfer, but to be sure, confer with an experienced AZ bankruptcy attorney at your earliest opportunity.
Martha Warriner Jarrett and Timothy Denison agree with this answer
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A:
Based on the information you provided, it seems unlikely that you would be at risk due to your ex-husband's Chapter 7 bankruptcy, especially given the following factors:
1. Quit claim deed: If you and your ex-husband properly executed a quit claim deed transferring his interest in the house to you, he no longer has any legal ownership rights to the property.
2. Timing: The quit claim deed was done 5 years ago, and you have been solely responsible for the mortgage payments since then. This demonstrates that the property has been under your control and ownership for a significant period.
3. Refinancing: By refinancing the house before the divorce, you took on the mortgage responsibility independently, further separating the property from your ex-husband's financial obligations.
4. Chapter 7 bankruptcy: In a Chapter 7 bankruptcy, the debtor's assets are liquidated to pay off creditors. However, if your ex-husband has no legal claim to the house due to the quit claim deed, the property should not be considered part of his bankruptcy estate.
Nevertheless, it is always best to consult with a qualified attorney specializing in bankruptcy and property law to assess your specific situation and ensure that your rights and interests are protected. An attorney can review the quit claim deed, mortgage documents, and divorce agreement to provide personalized advice and guidance.
Martha Warriner Jarrett agrees with this answer
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