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Ask WALLSTREETESQ Your Own Question
Category: Bankruptcy Law
Satisfied Customers: 17223
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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In NJ. I am about to declare bankruptcy within the next couple

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In NJ. I am about to declare bankruptcy within the next couple of months. I also may have a landlord judgement coming against me within the next couple of years for maybe 100K, from a commercial lease I had to abandon one month ago. My other debts include a house that's about to be foreclosed upon (140K owed) that I do not live in, plus a 25K SBA loan balance (when I abandoned the commercial lease I sold the collateral, my business equipment, which was probably fraud which I now realize). I have cash savings in a box at my home and want to buy a house for 110K with it for my family to live in. Right now we are in a situation that is not good, and need a place to live. My question is, should I give the money to my dad and let him buy the house for me? And then transfer it back to me later (sell back to me for a dollar or something, once everything settles down)? Or just buy the house in my name (I'm worried about the landlord finding it and putting a lien on it after he gets his judgement)? Or form an LLC and buy it under the LLC? If I do it that way, should it be a single-member LLC (just me) or put multiple managing members on it (ie. my dad, my husband, etc.)?


This is a complicated matter, you may want to create an LLC and not have your name as a shareholder and buy the property that way,


however be aware if you do file a personal bankruptcy the transfer will be looked into, and the trustee can go after it,


to avoid creditors, consider creating an LLC, and have your dad or spouse as the officers, this way any judgments against you cannot be attached on the LLC,

If you have any further questions please do not hesitate to ask.
Customer: replied 3 years ago.

Can I just have my husband buy the house? We have different last names but are legally married. His name is XXXXX XXXXX the commercial lease although we were married when I signed it in '06. Was signed by my LLC with a personal guarantee by me. His name is XXXXX XXXXX on the foreclosed house's mortgage papers (although he is on the deed). He is not declaring BK; only I am. What kind of lawyer do I need to talk to? It seems like I call them up, they get on the phone with me for 5 mins to talk, and then leave things open-ended. I have talked to (and paid to consult with) so many lawyers over the years I have had these problems. No one seems to help or have any idea what to do since my situation is so complex. Then, I get faulted for making the "wrong" decision on my own... I think people think I should know what to do already (I have a professional degree and went to college for 10 years), but I'm a veterinarian not a lawyer and on top of that, I have twin 4-year-olds to raise...I'm just so frustrated, sorry. =)

Yes, you can have your husband purchase the property, if it is in his name it will be protected from creditors. Since he did not guarantee the lease he would in no way be liable.

Customer: replied 3 years ago.

Can you clarify this though: Say I declare BK but landlord still gets a judgement against me (I heard that is possible, right?). In NJ it lasts for 20 years and is renewable. So if someone else (dad or spouse) buys the house, and I go through the BK and a couple of years go by, and there's a judgement in place for 100-200K against me that I never paid, can the deed still be transferred back to me and put in my name? Or would that action trigger something (due to the judgement)?

if you declare bankruptcy the judgment is going to be discharged. I would not file bankruptcy any time soon, if you are planning on buying a home, as all household assets can be taken in a bankruptcy, the best part of buying the home with your husbands name is XXXXX XXXXX personal creditors cannot attach the home.

Customer: replied 3 years ago.

And so husband buys it, but can deed be transferred to me or to both of us (for a dollar or whatever) after a couple of years go by?

yes, the deed can be changed at anytime
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