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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2832
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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MY WIFE AND I NEED TO FILE BANKRUPTCY BUT MY WIFE HAS A THIRD

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MY WIFE AND I NEED TO FILE BANKRUPTCY BUT MY WIFE HAS A THIRD SHARE IN HER FATHERS TRUST, A SMALL AMOUNT OF MONEY AND A HOUSE MAYBE 175000.00 SHE IS NOT ON THE DEED OF THE HOUSE. WE WANT TO GIVE HER SHARE TO EITHER ONE OF HER SISTERS, OR MY SON. BEFORE WE FILE, I GUESS MY QUESTION IS CAN WE DO THIS? AND HOW FAR BACK CAN THE CORT GO AND UNDO THIS? AND WHAT ARE THE PENALTIES IF THIS IS FOUND TO BE ILLEGAL.

Terry L. :

Hi and thank you for your question. In the future, you can request me to answer any further questions.

Terry L. :

Unfortunately, chapter 13 may be the best option to protect these assets.

Terry L. :

If she does nothing,the bankruptcy trustee can liquidate her share of the assets to pay the creditors in the bankruptcy case.

Terry L. :

if she transfers the assets to others, the trustee can void those transfers as either preferential transfers or fraudulent transfers if she does not receive fair market value in exchange for them.

Terry L. :

If she does transfer them,and say she does get fair value in return, the cash would then be an asset, that would need to be spent down on necessites before a chapter 7 should be filed to avoid liquidation of that.

Terry L. :

Preferences can go back 2 years.

Terry L. :

Other transfers and payments are generally a year lookback.

Terry L. :

Chapter13 is a debt repayment , where you would pay back enough of the unsecured debts to protect these assets.

Terry L. :

You and your wife should go meet with a local bankruptcy attorney to review all these issues to help set you up on the proper course. (most offer free initial consultations)

Terry L. :

good luck and thank you for your question.

Customer:

what if we did get fair market value and applyed it to our home loan before fileing bkprt.

Terry L. :

if you make a large payment over $600 to a creditor before filing, the bankruptcy trustee can make them turn it over to pay creditors.

Terry L. :

so that would unlikely work, as well you would create more equity in the home, and depending on exemptions available, may create equity in the home then which the trustee would then liquidate

Customer:

dam and this applys to ca law

Terry L. :

all states, yes

Terry L. :

i would look to chapter 13

Customer:

bummer, well thank for you time sir.

Terry L. :

you are welcome. come back after you meet your lawyer if you have any other questions.

Terry L. :

good luck.

Customer:

i will thanks bye

Terry L. and other Bankruptcy Law Specialists are ready to help you
You are welcome. take care.