maekenzie Posted October 17, 2003 Report Share Posted October 17, 2003 I will start by saying I will try to keep this short.To make a long story short, Me and my husband are about 70,000 in credit card debt. About a year ago due to personal reasons we became unable to make the payments. A month ago my Mother was killed in a head on car crash. I am two weeks away from probate putting my Mothers house in my name. I realize this will make me an easy target if my creditors learn I have inherited a second home. I think the only sure way to protect my mothers house from my creditors is to go ahead and file bankruptcy.Due to my present financial state, I think that chapter 7 would be my only option. A couple of my main questions are: 1. Does the bankruptcy go into affect the day you file? (Because my probate will be up at the end of this month.) 2. I was also wondering if it would be beneficial for me and my husband to file bankruptcy seperately or jointly? (The house and 50,000 of the credit card debt are soley in my name while the remaining 20,000 is soley in my husbands name.)Any and all advice will be greatly appreciated.Thanks in advance for your help.Maekenzie Link to comment Share on other sites More sharing options...
LadynRed Posted October 17, 2003 Report Share Posted October 17, 2003 You're going to have a problem with that house in Probate. Even if you file now, it will become part of the bankruptcy estate. The homestead exemption in GA is only $5,000 (equity) and that would go to the home you currently live in, it will NOT protect your mother's house from siezure. If the house is free and clear with 100% equity, the Trustee is going to take that property and sell it to pay your creditors. The only way to save that 2nd property is to file Ch 13. Even then, I'm not 100% certain it will be protected if there is no mortgage on it.You should look at the GA exemptions, they are here:http://www.thebankruptcysite.com/exemptions/georgia.htmYou really should consult with a couple of BK attorneys first, that 2nd property is going to be a problem. You may be better off, in the long run, just selling it once its yours and pay off your debts with the proceeds. You'd get more for it than a Trustee likely will. Link to comment Share on other sites More sharing options...
travelgrl Posted October 17, 2003 Report Share Posted October 17, 2003 IF it were me I would be inclined to sell it OR I would transfer the deed into my sisters name. I dont know if you have any close siblings that you could trust, but this may be a way to keep the house. Link to comment Share on other sites More sharing options...
maekenzie Posted October 17, 2003 Author Report Share Posted October 17, 2003 Thank you for all of your suggestions. After researching online last night, I've got a few more questions that I hope you can help me out with. 1. If I transferred my house over to my Mother-In-Law, would the house be safe? (Either if I transferred after I became executor or if I let her be executor of my Mother's estate and it never even transferred to my name at all?)2. When a bk is discharged, can they overturn it and how long of a legal timeframe do they have to dispute it before I am safe? (For example, if I get the house out of my name but then one of my creditors finds out about it).3. How does the bk court and creditors find out about my inheritance if I do not disclose it? 4. Does anyone know how a friendly lien against a house works?5. Does anyone have any experience on how a offshore trust works and is it safe?Thanks in advance for your help, it is really appreciated.Maekenzie Link to comment Share on other sites More sharing options...
mrsmo914 Posted October 17, 2003 Report Share Posted October 17, 2003 You really really really need a lawyer on this one. You do not want to get caught not disclosing stuff and if you transfer stuff they can and will take it back from who you gave it to and sell it PLUS you would get into legal trouble. The things you are asking about are complex issues that you would not want to take advice from laymen like us for. It would be worth a consult with an attorney. Some will do an initial consult for free. Good luck to you!Thank you for all of your suggestions. After researching online last night, I've got a few more questions that I hope you can help me out with. 1. If I transferred my house over to my Mother-In-Law, would the house be safe? (Either if I transferred after I became executor or if I let her be executor of my Mother's estate and it never even transferred to my name at all?)2. When a bk is discharged, can they overturn it and how long of a legal timeframe do they have to dispute it before I am safe? (For example, if I get the house out of my name but then one of my creditors finds out about it).3. How does the bk court and creditors find out about my inheritance if I do not disclose it? 4. Does anyone know how a friendly lien against a house works?5. Does anyone have any experience on how a offshore trust works and is it safe?Thanks in advance for your help, it is really appreciated.Maekenzie Link to comment Share on other sites More sharing options...
LadynRed Posted October 17, 2003 Report Share Posted October 17, 2003 1 - ANY transfer of property in your name for up to 1 year of filing for bankruptcy could be looked at as a fraudulent conveyance. Trustee's can come after assets for up to a year ... sometimes longer if they know you'll be coming into an inheritance that you knew would be yours before you filed. Sucks.. but it happens. 2 - Discharges CAN be overturned, but I dont' believe its all that common. Subtantial fraud is the usual reason. Dismissals are more common and those happen BEFORE you ever get to discharge.3 - You'd be surprised. I've seen cases where neighbors turned in neighbors to Trustees !! Disgruntled relatives and EX's also prompt discovery. Its best not to be tempted - BK fraud can buy you a visit from the FBI, jail time and LOTS of fines.4 - "friendly lien" ?? What do you mean ? A lien is a legal means to collect debt or secure property.5 - No -- but it doesn't sound like a good idea if your thought is to hide assets. Link to comment Share on other sites More sharing options...
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