Q: When can chapter 7 be filed after quitclaim deed in utah?
Mortgage was refinanced over two years ago, petitioner was not on the refinanced loan, but was never taken off deed to house. A quitclaim deed was filed in February 2021. Due to it not being done when the refinance took place. Will that cause potential problems when filing a Chapter 7, the debt is from a sole proprietor business.
A: The bankruptcy trustee is likely to have questions about the transfer of the client's interest in this property. The client's interest is an asset that, if not covered by an exemption, could be liquidated to pay creditors. The trustee will want to know why the transfer was ultimately made, how the client was compensated for giving up his or her interest, and whether the compensation can be reached to pay creditors.
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