Can I invest money in my wifes name if I have claimed bankruptcy?
I walked away from my home in Michigan ( prop val. fell from 140k to 65k) and bought another home outright….. the bank has not come after me yet and I have not made a payment in 5 months nor have they foreclosed…… I know the foreclosure is coming and probably a deficiency judgement but I plan to file bankruptcy if they do…… but my question is…… the mortgage was in my name only and I have all my money in cash in a safe and would like to open an online trading acct. and put some money in the market in her name……… would it be a wise thing to do? Even though we are married , can the bank come after anything she has in her name even though her name was not on the mortgage?
Posted June 1st, 2010 in When To File Bankruptcy. Tagged: 5 months, acct, bankruptcy, deficiency judgement, foreclosure, money, mortgage.
Simple answer is no they cannot chase her for debts in your name (unless you have verifiable joint assets), but people may be very wary of her financially as her name will be linked to yours for having done a runner on your existing mortgage with a possible bankruptcy of her husband to follow. I assume you weren’t daft enough to put the new house in your name and again that should protect you both unless the bank decides to investigate where she suddenly found the cash for an outright purchase for a new home from, my guess would be that with the economic turmoil going on at the moment they wont have the inclination or resources to pursue the overwhelming number of small cases like yours. However if they do decide to go after you or to sell the debt outstanding once the 1st house is sold, to a collections agency, then you could well be chased and harrassed, but obviously by going bankrupt with no ‘obvious’ assets you should be free to continue life with a new found sense of freedom, albeit, as with the trading account, living through your wife’s identity.
June 1st, 2010 at 7:02 am