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Ellen
Ellen, Attorney
Category: Bankruptcy Law
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Experience:  Bankruptcy Lawyer. Experienced.
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If a debtor who owned a home with her daughter and then signed

Resolved Question:

If a debtor who owned a home with her daughter and then signed over her interest in the home to her daughter and now is filing a chapter 7 BK how would that be treated in the BK
The home was in TN where the debtor lived for 10 years with her daughter. Last June she had a falling out with her daughter, signed over the home and moved to MA. She has been living in MA for about 10 months
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 4 years ago.

WebLaw :

*This chat is not intended as legal advice. It is general information that may or may not apply to your situation and should not be relied upon.*

WebLaw :

Welcome to JustAnswer,

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WebLaw :

what is the amount of equity in the house

WebLaw :

In other words, what is the difference between the price the house could have sold for at the time of the quitclaim and the amount of the mortgage

Customer:

I'm not sure of the equity. Assuming there is some equity and it is below the exemption amount for the state of TN how would it be treated?

WebLaw :

If it is below the exemption amount, it will typically not be at issue in the bankruptcy

WebLaw :

however if it exceeds the exemption amount it would be considered a fraudulent conveyance and set aside by the trustee

A quitclaim or transfer of a debtor’s assets to a third party, for less than a reasonably equivalent value in exchange for such transfer, is considered to be a “fraudulent conveyance”.

WebLaw :


Bankruptcy Code §548 provides for the avoidance of fraudulent transfers within two years before the bankruptcy filing date. Transfers to self settled trusts and similar devices are subject to a longer avoidance reach back (10 years).

Ellen and other Bankruptcy Law Specialists are ready to help you

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