I AM OVERWHELMED WITH CREDIT CARD DEBT BUT PUT MY HOME INTO MY DAUGHTER’S NAME 2 YEARS AGO. CAN YOU HELP ME?
People do not realize that regardless of the reason they put their home in a relative’s name; this is considered a transfer and will have major implications in a bankruptcy case especially a Chapter 7.
A Chapter 7 trustee will look back 4 years regarding any transfer under the law and they could potentially sue the person who you transferred the home. Thus, regardless of the equity, Mr. Taieb would never recommend a client file a Chapter 7 since this could generate substantial litigation and stress which could be very costly for a client in debt.
The best way to deal with this situation is to file a Chapter 13 since the Chapter 13 trustee will not pursue the client but will have any non-exempt equity incorporated into the trustee payment. Thus, it is much better to pay this back over 3-5 years or do minimal payment on your debt than to have a Chapter 7 trustee pursue the relative to whom you transferred the home.
When you file bankruptcy, disclosure is the name of the game, so you must be honest about everything regarding your property or there can be serious fines and penalties.
If you have any questions concerning this matter or any other matter contact TAIEBLAW at 856-235-4994 and schedule a FREE initial consultation.
Steven N. Taieb, Esq. has been a South Jersey Bankruptcy Attorney for over 34 years and is board certified in consumer bankruptcy law by The American Board of Certification which is accredited by The American Bar Association.