Refinanced home cause a problem?
September 12th, 2005 by Questions
Over a year ago in June, my new husband and I refinanced my home (bought in my name long before I met him) to pay off a credit card debt of mine that had gone into collections and they were forcing me to come up with the money immediately.
When we approached the mortgage broker, she noted that my credit was terrible at that point, and I would be unable to get a new mortgage. But my then fiance had a great credit rating, and so she suggested we transfer the house into his name only, and use his credit rating to get the new mortgage. We were able to reduce our interest charge from 7.5 to 2.4 and get money back to pay off most of my debts!
I paid off the credit card debt and all of my smaller debts and made large payments on some larger debts.
However, I still have the larger debts outstanding and my business has been forced to close a few months ago. So I can no longer make payments, and my now husband is no position to pay them for me. All debts were created before I met him, and in my name only.
Anyhow, now I need to declare bankruptcy as I have no income, but I am afraid. I have been told that they will see our house transfer as fraudulent, and I am afraid I will get in so much trouble as a result! As a result of the refinancing last year, there is no equity in the house at this time. I did not know I would have to declare bankruptcy a year later, but do understand how they might not see it that way…