Paul K, Esq. : Hello, my name is XXXXX XXXXX I would love to assist you. Give me a moment to research your issue and I will answer promptly.
Paul K, Esq. : If you transfer property prior to filing, it does raise red flags BUT if there is no equity, then it doesnt matter.
Paul K, Esq. : The first question would be, why transfer it at all?
Paul K, Esq. : And even if you want to transfer, why not wait until the BK is done?
Paul K, Esq. : So again, if the property has a mortgage and no real equity, the Trustee will look at it, but wont really do anything
Paul K, Esq. : The main thing they look for is if an asset with no lien was transferred
Paul K, Esq. : 1) Why do you want or need to transfer?
Paul K, Esq. : 2) Is there equity, and if so how much?
Paul K, Esq. : From there I can better help you.
Paul K, Esq. : I understand how crazy and confusing this all is!
The property has equity if homestead exemption is lost. I dont want to transfer but father in law says he will only help with mortgage payments if it is QC'd to him. I have been saying all along I will transfer once BK is discharged but i cant have transfer screw up the BK. Is it true that doing any type of transfer will eliminate the homestead exemption, thus opening up the equity that BK trustee will deem as appropriate to take house and use that equity to pay creditors?
Paul K, Esq. : Yes it is true.
Paul K, Esq. : YOur path is the correct one
Paul K, Esq. : Keep property, use exemption, then transfer to him after BK ends
Paul K, Esq. : it will only be 4-6 months in a Ch 7
Paul K, Esq. : So it is not like he has to wait long
Paul K, Esq. : TO help you on this, you can let him know that if you transfer it first, they will ask HIM to pay the equity to the trustee to go to the creditors.
Paul K, Esq. : Obviously he does not want that!
Paul K, Esq. : So your plan on waiting 4 months or so is best.
Thank you my "good friend"! That is exactly what I have been trying to convey but to no avail. I appreciate your succinctly detailed advice.
Paul K, Esq. : No problem. Have a great weekend!!!
Paul K, Esq. : And don't forget to provide a positive rating for our session.
Paul K, Esq. : If you have more questions, you can request me in the future!
Paul K, Esq. : Thanks/