How to protect an asset without committing fraud?
Question Details: I own a home with another person (not married). There's little to no equity. We're both on the loan and title. We went our separate ways amicably; in fact he co-signed a home loan for me recently on my now primary residence. He pays/lives in a house 1; I pay/llive in house 2. If I'm planning a bankruptcy filing, can I first take my name off the deed for house 1 so he doesn't get dragged into the filing? Can I get my name taken off the loan through bankruptcy without affecting his credit? BTW: He can't refinance house 1 in his name since there's little to no equity.
Without reaffirming the loan, you will effectively be stripped from the legal obligation to repay the mortgage. Your filing bankruptcy will not affect his credit as long as he continues to make the payment. You could modify the titles, but you would need to disclose that on your statement of financial affairs and the transfer could be avoided by the trustee as a fraudulent transfer. As a general rule, playing with titles is normally less-advisable right before filing for bankruptcy
