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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I have 2 properties that I own outright that are my only income.

Resolved Question:

I have 2 properties in a trust that I own outright that are my only income. Can they be taken if I file bankrupcy in the state of Nevada?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.
Hi JACustomer,
Are these "spendthrift" trusts? (A spendthrift trust is one that specifically prohibits the trust or the proceeds from being distributed to creditors.)
Customer: replied 6 years ago.
No. It is Just a living trust, I believe. Can that be changed before filing? Or can i change the trustee to remove myself altogehter?
Expert:  cfortunato replied 6 years ago.
Is the property worth more than the mortgages - if any - on them?
How did you get the trusts (did you set them up, did you inherit them, etc.)?
Customer: replied 6 years ago.

They are owned outright.... no mortgage

A lawyer did the trust for myself and my partner who died a year ago making me the only trustee. They are my only income.

Expert:  cfortunato replied 6 years ago.
It would be possible to apply the Homestead Exemption to one of them if you were living in it, even if you were renting out a portion. Otherwise, the property could be taken if a Bankruptcy is filed. The Bankruptcy Court does not care that the property is the debtor's only source of income.
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