Q: Personal Bankruptcy Question
My wife and I found ourselves in a considerable amount of debt in the last year because I had to take time off from my job and recuperate from surgery that I had. We just couldn't keep up with everything with the small amount of income that was coming in. We tried to do the right thing and create a plan to relieve ourselves from this financial burden. My in-laws offered to sign over the deed to their house that was free and clear from debt as collateral. We were very, very reluctant to accept such a drastic measure, but I knew I was going back to work and my salary can range up to $125,000/yearly. So we accepted their gift(bless them). The short of it is, NO bank was comfortable taking a home that was currently being used as a dwelling for collateral. Last option: we file for Chapter 7. We signed the deed for the house over to my wife's brother. We never made a profit from this property. Will this former ownership of this property be a problem when the trustee does his research?
A:
What you did was give away an asset that belonged to you prior to filing bankruptcy.
Giving away the house is no different than giving away money or stocks and bonds.
The Trustee has a right to get that house back and sell it to pay the creditors.
The Trustee won't have to do much of a search since you will tell him what you did when you fill out the forms.
Bruce Alexander Minnick agrees with this answer
A: Yes. You need to contact a competent bankruptcy attorney to review your complete financial situation before you do anything.
Bruce Alexander Minnick agrees with this answer
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
