Answer

Any transfer just before a bankruptcy could be an issue. The court can undo transfers if you do not receive fair market value, then the court can undo the transaction to go after the asset themselves to pay your creditors. If you do get fair value, then that cash is an asset in your bankruptcy case too. Any sale, should be for the entire property, and at closing the mortgages should be paid off, thus removing it from your name. I would be cautious to quit claim property with promises to refinance etc, because you are giving up your equitable interest in doing so. There are many scam artists who agree to help the owners pay the mortgage, let them 'rent' it back, and then they mortgage out the equity, leaving the original owner with the mortgages, and an inevitable foreclosure. You should meet with a local bankruptcy attorney to help design your case to protect your assets. You should also have all real estate transactions done by your own attorney, to protect your interests.

Expert:	Terry L.
Pos. Feedback:	100.0 %
Accepts:
Answered:	2/3/2009

Attorney

Better Business Bureau. 10 Years bankruptcy experience. Member of the Chicago Bar Association