Q: Will I lose my property (30 acres incl. home and separate mobile home) if I file Chapter 7? I am 78 with a 401k and SS.
I live in the state of Georgia and I cosigned with my nephew on his private student loans (Navient Tuition Answer). He received a discharge from his Chapter 7 filing and the loans were forgiven. He owes 186K and they are coming after me for the balance. If I file Chapter 7 will I lose my -
30 acres (family land - value is 400K)
Family home (1940's home on the 30 acres)
Mobile Home (located on family property that my nephew lives in)
I am retired with 65K in 401K and Social Security -
The original intent was to give the property and the two homes to my nephew and his children prior to my death as the property and home have always been handed down in inheritance. Is this something I should wait on doing if I am going to file Chapter 7?
A: You need to consult a bankruptcy lawyer near you bbefore you do anything. You have a lot to lose otherwise.
Martha Warriner Jarrett agrees with this answer
A:
In a Chapter 7 bankruptcy in Georgia, you can use state exemptions to protect some of your property, including equity in your home. The Georgia homestead exemption may cover some of the value of your land and home, but it has limits. The exemption for homestead is $21,500 in value and can be doubled when filing jointly. Additionally, there are federal non-bankruptcy exemptions that protect retirement accounts like your 401(k).
However, if your property's value substantially exceeds the exemption limit, the trustee could potentially sell the property to pay creditors. It's important to consider that transferring property before filing for bankruptcy could be seen as a fraudulent transfer, and such actions are scrutinized by the bankruptcy court. It's advisable to consult with a bankruptcy attorney who can analyze your situation, including the timing and implications of any intended property transfers, and advise on the best course of action to protect your assets while addressing the debt.
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