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VanDLaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 833
Experience:  Chapter 7 & 13
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I have a home in Las Vegas that I live in. I also have a home

Customer Question

I have a home in Las Vegas that I live in. I also have a home in Tennessee that I own, but my parents live in and take care of. I pay the mortgage on both homes. Unfortunately, with the ecomony the way it is, I don't think I can continue paying both. I do not want to lose the Tennessee home if for some reason I need to file bankruptcy or foreclose on my Vegas home. What can I do to prevent the Tennessee home from being 'touched'. Can I put it in my parents name? Please help.
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  VanDLaw replied 8 years ago.



Since you are a Nevada resident you would need to file bankruptcy there, and use the Nevada state exemptions. Your situation will dictate if it is better for your to file a Chapter 7, which is straight liquidation, or a Chapter 13, which is a repayment plan for pennies on the dollar over 5 years. Each chapter has specific requirements that must be met, and it depends on what the debtor is trying to accomplish.


It is illegal to make transfers of property or other assets for the sole purpose of keeping the asset out of the reach of the bankruptcy court. They look back one to two years, some transfers are not an issue, and some may be. The Trustee will investigate the transfers to see how to handle them. Worse case is they find they were fraudulent transfers and dismiss your bankruptcy. It gets even worse if they find you did this but lied about it in the 341 meeting.


Since the Tennessee home is not your homestead you cannot claim the homestead exemption. If you are current on your payments however, you can do what is called a "reaffirmation". This means that you are filing bankruptcy but this note is not included and you sign an agreement in which you agree to keep making the payments. Sometimes you can even negotiate a better interest rate or terms. If you want to surrender the Nevada home, then it gets surrendered, the note is discharged, and the mortgage company cannot file any deficiency judgments for the difference.


BotXXXXX XXXXXne is do not put the home in your parent's name, if you do find you need to file, keep up the Tennessee home payments, and reaffirm, all other debt will be discharged. (This is for a Chapter 7).