Find the best financial services for you at: SMARTFINANCESOLUTIONS.NET - California bankruptcy and divorce - and our house? - We filed bankruptcy (Ch 7) while married and now filed for divorce. How does it work with the house if it was included in the bankruptcy? I am modifying the loan so I can stay in it with the kids and now he says he will not sign over title. So the court awarded the house to me (which is upside down about $100,000) and an Elisor to sign the title over to me.