House Equity
My husband is thinking about declaring bankruptcy. We have a house that we bought 2 years ago. The $10,000 downpayment was given to me only as a gift by my parents (like a living inheritance) and the Gift Letter was filled out in my name only. Is this downpayment and my 1/2 of the equity protected in the event of his bankruptcy?
Thanks.
If your deed doesn’t set out specific ownership percentages then you are entitled to 50% of the equity in the house (assuming you own it joint and severally). If your parents gave you a gift and you used that money for the downpayment it may not be protected – it’s the sort of thing you’ll need to discuss with a lawyer (as opposed to a trustee) before your spouse files for bankruptcy.