West Trenton, NJ Bankruptcy Law Firms & Lawyers

It depends more on how the debts are allocated. If you file bankruptcy alone (which is allowed) then your debts will be cleared (assuming they are debts eligible for discharge) but hers will not be. So for example if you are both on the home loan then she would still be liable. You should consult an attorney to determine your best course.

If you are renting a home under a contract where you will eventually get ownership information regarding the home and any money owed on it would be listed in the bankruptcy schedules. The reason for the filing does not usually get asked until the 341 meeting in the case. The rent to own purchase contract would not prevent you from filing for bankruptcy relief.

No. Simply executing and filing a quitclaim deed will not release you of liability if you are liable. However, if a bank is requiring such a quitclaim deed and you don't provide it, the bank will foreclose and your liability will go from being theoretical to real as the bank will either collect actively from you or forgive the debt, which will cause you to incur debt forgiveness tax debt (unless you can find an exception). Note, importantly, that you may not be liable for any deficiency on payment of the mortgage against your home if that property was your principal residence and the loan or loans were the loans used to purchase the home originally (that is, they were the original loans to buy your principal residence and have not been refinanced and they were not a true credit line).