Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.
Couple of things.
First, you would have to disclose the sale in the statement of financial affairs on the petition for two years from the sale.
you have to list all sales in the 2 years leading up to the case.
Second, the issue becomes - what was the property worth when you sold it?
You said you sold it for the balance owed. If the value was greater, then that's where the problem would come in a chapter 7
Since you sold it to family, that is an insider transaction according to the court.
The difference between the value and the sale price could be pursued by the trustee.
The trustee has the power to avoid the preferential sale to your son, to go get the difference to pay your creditors.
If the amount is not that great, then the likelihood of that happening would diminish.
The trustee would factor in the amount of debt, the amount of estimated recovery, and the estimated amounts of cost to recover that amount
So, to prevent that, you may want to look at a chapter 13 - which can pay back enough debts to protect that transfer.
Do you have any questions?
If you do, let me know, best of luck. please click accept so I can get credit for answering.
Please click accept so that I may get credit here for answering.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).