# If wife is bankrupt - can we hold the house in my name?



## AnAthas (9 Nov 2010)

My wife has taken on some property in a will. Although we are reasonably solvent I'm looking at a worst case scenario. If the two properties in my wifes name are foreclosed and the bank are still looking for cash back...can they come looking for the family home that is my name? ie If my wife goes bankrupt does that make me bankrupt also or is there legal separation?


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## mf1 (10 Nov 2010)

You are separate individuals. In a debt situation only assets in your wifes name ( sole or joint) are available to creditors. If the family home is in your sole name , it is not an asset available to your wife's creditors.

mf


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## Green (10 Nov 2010)

This issue has been covered a lot in the media recently with the Drumm, Ex Anglo Irish CEO case


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## AnAthas (10 Nov 2010)

Thanks mf. 
YOBR, I know I've seen Drumm, Fitzpatrick et al having the same situation, but it seems they live in a different world as regards the law. I didn't know how it work out for ordinary plebs.


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## Green (10 Nov 2010)

AnAthas said:


> it seems they live in a different world as regards the law. I didn't know how it work out for ordinary plebs.


 
They are governed by the same laws but just have better lawyers....


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## circle (11 Nov 2010)

I remember reading about a two year asset transfer limit.. e.g. that some individuals who were planning to declare themselves bankrupt transferred everything to their spouses in Ireland, then changed residence country, planning to wait two years and then declare bankruptcy somewhere with more forgiving laws.

My understanding was that this was a way for them to protect the assets that are transferred to the spouse.


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## ipad (11 Nov 2010)

Does transferring to the wife - as in what Drumm Fitzpatrick etc did - mean that the properties were originally in joint names and the husbands took themselves off the deeds, or is it that the houses were in the husbands sole name first?


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## Time (11 Nov 2010)

Could be either case. I believe in the Drumm case the house was in joint names.


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## JoeB (11 Nov 2010)

Well, ... if the OP himself went bankrupt would his entire family home be available to his creditors? I suspect not as his wife lives there.

So his wife seems to have a claim on the property, yet her claim isn't available to her creditors?

This seems unfair.


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## Time (11 Nov 2010)

Unfair to whom?


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## JoeB (11 Nov 2010)

Unfair to the wife's creditors... if she effectively owns half a house but it's beyond them when trying to recover debts owed.

Keep in mind that if what I say is correct then half the house is beyond all creditors... so it's untouchable. (This is if the debts are owed individually.. if the couple owe debts together then maybe the house would be available... my point is that no judge will kick the wife and children out of her home even if it's entirely in her husbands name.. perhaps I'm wrong.)


To clarify..
if the husband has the house entirely in his name, yet his wife lives there...
if he owes money is the entire house available to creditors?
if she owes money is any of the house available to the creditors?

if they both owe money jointly is the house available to creditors?


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## Emiso (14 Nov 2010)

How can you inherit some properties if there are mortgages/ loans outstanding on them. Would this form part of the deceased estate ?


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## Time (15 Nov 2010)

They would have to be sold to satisfy any mortgages secured on them.


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