Question
Crediter ask debt from me. Can they go after our house which is under my spouse's name before mariage?
My friend use my name to get smal business loan and he never pay back. now the banks are asking money from me because I sign the loan paper. I can not find him. Can I file bankrupcy to protect my asset? Are they going to get my house which is under my spouse's name. We have one house before we got married where we live in in California and one house after we got married in other state. Neither are under my name. We did not have any quick claim.
2 years ago - 4 answers
Best Answer
Chosen by Asker
It's pretty rare they'd actually put a lien on you, and that can really only take place after they get a judgment against you for the debt. States may vary in their marital rights for property though. I hear stories that in CA, one spouse can sell a property without the other's permission. In MN, where I'm at, that can't legally happen, since in MN, once you get married, your spouse automatically gets rights to your property, regardless of any quit claim deed requirements. And since you didn't mention the other state, no way to know. A bankruptcy is only advised if you have zero capability of repaying that loan by yourself. The laws are so strict now, anyone who can pay even $100/mo. must do a Chapter 11 bankruptcy and pay for 5 years. Ouch. There is a median income limitation on that requirement, but it counts both you and your wife's incomes. A BK consultation should be free initially, so go meet an attorney and find out.
Source(s)
10 years in mortgage banking
2 years ago
Asker's Rating: 
Other Answers
Since you live in California, which is a community property state, they can if they have a judegement against you. I've never filed BK so I'm not sure about all that.
by pg412- 2 years ago
Filing bankruptcy will not protect your homes if you are still paying off a mortgage. It is possible to have a lien placed on the property by the creditor, which will make it very difficult to refinance. At this point you should contact legal aid or a lawyer to see what you can do, but it seems to me that you are stuck with your friends debt and will have to come to some payment agreement with the creditor.
by Rell Smooth- 2 years ago
It has been my "casual" observation -- news articles, financial columns mainly -- that keeping the names separate in marriage works for getting new credit, however when it comes to bankruptcy, that's when the judge starts defining cause and effects of how come you have this asset or why you have this lifestyle and indeed, can you prove your actions were not, in fact, a fraud to hide assets. Funny how the label we put on money changes its smell for taxing and legal purposes. In other words, seek a consultation with a bankruptcy lawyer for the real advice. Bear in mind that Texas and Florida have homestead exemption protecting the owner that has lived within the house and claimed this exemption. That's why OJ moved from CA. Good luck, and all the best.
by blessed_thang- 2 years ago