Jackie2 Posted January 16, 2009 Report Share Posted January 16, 2009 This is kind of a dumb question....my husband is preparing for ch 13 BK. He has recreation hunting land that's land locked behind his father's house.A hunting buddy has offered to buy the land but can only give him half the assessed value. The land is assessed at 10 thousand he has offered 5.My husband is worried if he takes the offer at half value that when he files BK the court might have some sort of problem with it.I don't believe they will since we are just liquidating assets but my hubby wants to be sure.could there be a problem in court of hubby sells this land at half value to a hunting buddy? Link to comment Share on other sites More sharing options...
Denita Posted January 16, 2009 Report Share Posted January 16, 2009 The Trustee will look at anything sold within a certain time period prior to the BK. They may go back as far as 1 year. (In mine they wanted ALL real estate purchases and sales by me for TEN YEARS...so the sale will show). It has to sell for fair market value. Your lands value and tax assessed value are two different things. A land locked lot has very little value - an appraiser would need to provide you with the value. If you get an apprasial done before the sale and sell for FMV, then what are you going to do with the proceeds???The Trustee will want to know exactly where the money went. Link to comment Share on other sites More sharing options...
bingo Posted January 16, 2009 Report Share Posted January 16, 2009 Sure can. It's called an insider transaction and the trustee has the authority to reverse the transaction.On the eve of bk, make no property transfers unless your lawyer gives the OK. Link to comment Share on other sites More sharing options...
Jackie2 Posted January 16, 2009 Author Report Share Posted January 16, 2009 we were planning on using the money from the land to pay bills. My husband doesn't want to file BK. My other thought was to use the land money to help make a settlement to the one creditor that's bringing us into Arbitration.if we can settle with these guys then we just have 2 outstanding credit cards top deal with.thanks for the info guys. Link to comment Share on other sites More sharing options...
OMGWhatHaveIdone Posted January 16, 2009 Report Share Posted January 16, 2009 So then the question you really need to be asking yourself, is this: Is filing a BK and wrecking my credit for ten years, really worth it? Seems to me, if your hubby is willing to take $5000 for a $10,000 piece of property, and that the $5k can successfully pay all, if not most of the debt you have, then I don't really see where filing a BK would be in your best interests. That's just my take on it since there really isn't much more information to go on. Another factor to consider is this: Which plan you qualify to file under. Do you have a house? Are you behind in payments or facing foreclosure? If you answered yes to either, then sure, filing a CH 13, will save your home, however the fees that a BK attorney can charge, may make it not worth it in the long run to file. There is much information in the forum about BK and what it can do to your credit score. There's information to read about whether or not filing is right for you. Read through the stickies before jumping to any decisions. As for the land, don't take less than what it's worth. If the assessed value is 10K, then find out what the Fair Market Value is. Usually the FMV is a bit higher than the AV. I wouldn't jump to any quick decisions on that land yet. Read, read and read some more. If it makes you feel any better, you didn't have a dumb question. IMHO, the only dumb questions are the ones that are never asked. Good luck~! Link to comment Share on other sites More sharing options...
That Girl Posted January 16, 2009 Report Share Posted January 16, 2009 Seems to me, if your hubby is willing to take $5000 for a $10,000 piece of property, and that the $5k can successfully pay all, if not most of the debt you have, then I don't really see where filing a BK would be in your best interests. I agree, assuming we're all understanding this correctly and that the $5000 would in fact pay off most of your debt.This is absolutely the route I'd go rather than filing BK, to tell you the truth. Link to comment Share on other sites More sharing options...
Jackie2 Posted January 16, 2009 Author Report Share Posted January 16, 2009 The 5 thousand wouldn't pay all the outstanding credit cards. It would pay off a few that haven't gone default. Which would mean more income monthly for us.his hunting buddy that's interested in the land would also need an appeasement to gain access. It would work out if he buys the land because we could give him the appeasement and he would let hubby still hunt on the land. it would be a win/win for both.if the court takes the land we would then be looking at giving access to the land to a total stranger...since my father in law lives alone that's something we don't really want to do. Access would be directly through his front lawn. Link to comment Share on other sites More sharing options...
That Girl Posted January 16, 2009 Report Share Posted January 16, 2009 Awww sweetie. Then yes, I personally would take this particular offer--not just for financial reasons but for emotional ones (your ties to the land/area, etc.).Good luck, dear, I'll be thinking of you. I'm sure you'll make the decision that's best for you and your family. I know this is hard. Link to comment Share on other sites More sharing options...
bingo Posted January 17, 2009 Report Share Posted January 17, 2009 The reason you file a Chapter 13 is because, you want to keep assets like land. Link to comment Share on other sites More sharing options...
nascar Posted January 17, 2009 Report Share Posted January 17, 2009 He has recreation hunting land that's land locked behind his father's house.A hunting buddy has offered to buy the land ... You might also check your local ordinances. Many states, counties, etc., now have laws in place that forbid the sale of property that has no deeded right-of-way access. This law affected many folks in my former state of residence, North Carolina. People were forced to purchase right of way from their neighbors, where it had always been allowed as a courtesy, before they were allowed to transfer title to the property to a buyer. You can imagine the great number of sticky situations that evolved from that. Link to comment Share on other sites More sharing options...
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