$125K in debt filing Chapt 7-Questions????

[StartingOver10]

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@joelotto wrote:

I have no idea on what is wrong and right in this case but I will share what I think about the house possibilities. You are a joint owner on the house...did you and your son pay 50/50 towards the house or was it a different percentage. Not sure if it really matters but maybe your son paid 80 or 90% of the house. I'm not sure if it's possible but maybe he could buy you out on the house and only have his name on the deed. Not sure if or how this can be done but anything is possible if you find a good BK lawyer. Even if it pushes the BK out 6 months and he finds a way to buy you out on the house....you use that money to pay for your own problem that you caused and not your son.  In the long run it's probably better that he gets you off the deed now before he looses what he worked for. I may sound harsh and I'm not trying to be but if you have a shopping problem don't take your son down with you. Separate your finances and be responsible for your own debt.

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This is bankruptcy fraud.  That's why I told her specifically not to do any transfers. The trustee goes back years on house purchases. They only puchased it in 2012. The normal one year lookback period would not apply here. For mine they went back TEN YEARS. Don't risk fraud. It has other ramifications.

[joelotto]

Startingover10   I'm not promotting BK fraud. What if they bought the house for 350k  and she put 50k and her son paid 300k is it or would it be considered BK fraud if she got bought out buy her son for the 50k she put in. I'm not a lawyer but I don't see why he couldn't pay to have her removed from the deed. If this is possible and they did do something like this and she hid part of the money prior to BK that would be fraud but I really don't know and it's best for her to talk with several BK attorneys and go from there. I guess I'm just trying to present possible questions she could ask a lawyer in hopes that they can find or do something that is 101% legal.

[StartingOver10]

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@joelotto wrote:

Startingover10   I'm not promotting BK fraud. What if they bought the house for 350k  and she put 50k and her son paid 300k is it or would it be considered BK fraud if she got bought out buy her son for the 50k she put in. I'm not a lawyer but I don't see why he couldn't pay to have her removed from the deed. If this is possible and they did do something like this and she hid part of the money prior to BK that would be fraud but I really don't know and it's best for her to talk with several BK attorneys and go from there. I guess I'm just trying to present possible questions she could ask a lawyer in hopes that they can find or do something that is 101% legal.

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I didn't take it as you were promoting BK fraud. I took it as you didn't know.  The BK laws are very specific. A sale (or a buyout) is considered a transfer. That's why I too suggested she speak to several BK attorney's and to not do any transfers because it doesn't matter to the court whether you know the law or not. These trustees are pretty ruthless because it is their job to find assets. This would be a huge issue for the OP.  The only reason I mentioned something right away is to prevent the OP from doing something by mistake that would cause huge issues if she does file BK. Of course, if she doesn't file, then it is not a problem. Like I said, they go back many, many years on real estate transactions. You are right though - it is a good question for her attorney.

[joelotto]

I hope things turn out good for the OP and hope she let's us here know what happens in the future as I find this one kind of interesting and really hope the best for the OP.

[Anonymous]

I live in PA. I won't do any transfers of any kind. I won't take that risk. My son purchased the home for me. Both our names are on the deed just incase something happens to me. I also have my old home I want to sale that I have a mortgage on that is current on mortgage payments. If anything I would give that house up over this home I live in. My last appraisal has it worth $119K and after that I had a new heating/ac system put in so I know it's worth at least $125K. They can take that one. That would take a headache off me. I still have bills I pay there plus the mortgage until I get it sold. I'll discuss that with the attorney too.

[StartingOver10]

Unfortunately you can't pick and choose which assets to list - you have to list it all. Including inventory of each of your homes, jewlery, furs, clothing, down to the pots and pans.

In some juridictions the trustee will send someone out to double check your list against the actual assets in your home. The middle district of Florida is notorius for this. The more you disclose - like owning the second property - the less I think you will benefit from a BK. It is more likely to benefit the creditors and hurt your overall  financial position. How much equity do you have in the other  home?

[Anonymous]

I don't know I owe $97K on a $120K mortgage. I would list every asset. I wouldn't want to commit perjury. I don't want to go to jail. I will seek out at least 3 attorneys and see what they say before I do anything. I also have my son's finacial advisor looking over my list of debts to see what he recommends.

[TRC_WA]

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@mnegron1969 wrote:

They won't make me sell my home just to satisfy a $125k debt, would they? My home is worth about $350k and I reside in PA. My equity I guess would be $350k. It was built 2012. I'm so confused right now. I'm not understanding my PA exception regarding homestead. I guess that's why it's best for me to seek out an attorney. 

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You're really asking that question?  Wow.  

Of course they would... they just want their money.

[Anonymous]

Dude this is new to me, I don't need u to be insulting  about it!

mod edit-mild profanity

[TRC_WA]

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@mnegron1969 wrote:

Dude this is new to me, I don't need u to be insulting about it!

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I'm not.. I'm just being blunt.  There's a difference.

As mentioned earlier in this thread the trustee is not your friend.  You can't expect the trustee to allow you to preserve assets that can be used to satisfy your debts.