You have the right to sell it before you file for bankruptcy. However, you must pay your creditors, too—and intentionally taking steps to deprive them of funds can rise to the level of fraud. Although selling property when anticipating filing for bankruptcy can be tricky, it can be done.
You usually do this by filing a quitclaim deed, in which your ex-spouse gives up all rights to the property. Your ex should sign the quitclaim deed in front of a notary. One this document is notarized, you file it with the county. This publicly removes the former partner's name from the property deed and the mortgage.
Your bankruptcy attorney is in the best position to instruct you whether to tell your creditors that you intend to file bankruptcy. For many, the answer is “Yes,” but there are special circumstances when it is best to avoid disclosing a pending bankruptcy action. Consult with your attorney and get the advice you need.
There's no guarantee that threatening to file bankruptcy will stop annoying creditor calls. The only sure fire way to use bankruptcy to accomplish this is actually to file a case. That's when an order called the "automatic stay" goes into effect and prohibits your creditors from making any attempt to collect a debt.
Once the quitclaim deed is signed by the grantor and accepted by the grantee, it's considered legal and effective. However, some counties in the U.S. require that the grantee sign as well – again, at your local office.
A house cannot be sold without the consent of all owners listed on the deed. When selling a home, there are different decisions that need to be made throughout the process. Decisions such as hiring a listing agent or negotiating a price are often challenging enough without having to agree with the co-owner.
Bankruptcy is very good at erasing most nonpriority unsecured debts other than school loans. For instance, you can discharge unsecured credit card debt, medical bills, overdue utility payments, personal loans, gym contracts, and more.
3 Things You Should NEVER Say To A Debt CollectorAdditional Phone Numbers (other than what they already have)Email Addresses.Mailing Address (unless you intend on coming to a payment agreement)Employer or Past Employers.Family Information (ex. ... Bank Account Information.Credit Card Number.Social Security Number.
A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code.
Offer a specific dollar amount that is roughly 30% of your outstanding account balance. The lender will probably counter with a higher percentage or dollar amount. If anything above 50% is suggested, consider trying to settle with a different creditor or simply put the money in savings to help pay future monthly bills.
How Long Does Bankruptcy Take? The bankruptcy process lasts about three to four months from start to finish for Chapter 7 filings. Chapter 13 takes the same amount of time to file, but because you pay down some of your debts over time, the payment plan may last three to five years.
Talk to Creditors, Not Collection Agencies Try to negotiate with your original creditors before they sell your debts. Taking the bull by the horns at this stage could help you keep a few points on your credit score. If you miss the opportunity to speak to your lenders, you'll haveto speak to debt collectors instead.