This means that if you are on the deed to someone else's home, you must disclose it on your bankruptcy papers (even if you think that you have no ownership interest despite being on title).
Filing bankruptcy and keeping your house is possible. Whether you can file bankruptcy and keep your house depends on your unique circumstances. Here’s what you need to know. Written by Attorney Andrea Wimmer. Will I lose my house in bankruptcy? What happens to your mortgage when you file bankruptcy? What does that mean for you?
But since a bankruptcy filing involves legal matters, it can be challenging to navigate the bankruptcy process alone. You can file the case without legal help, known as going pro se, but experts typically recommend relying on a bankruptcy lawyer to handle your case.
When is it OK (and how) to sell your property? You are still allowed to sell your property before filing for bankruptcy, but you want to follow certain guidelines to make certain there is no issue with your bankruptcy case. The most important thing is to always disclose information about a transfer.
Here's how it works. After filing for Chapter 7, your property will go into a bankruptcy estate held by the Chapter 7 bankruptcy trustee appointed to your case. However, you don't lose everything because you can "exempt" or remove property reasonably necessary to maintain a home and employment.
The good news is that bankruptcy can protect your home, holding off a foreclosure. Chapter 13 bankruptcy is designed to allow you to keep your home, even if you are behind on payments. If you keep your house after filing for Chapter 7, the fact other debts are discharged should make it easier to pay your mortgage.
The person who files for bankruptcy and receives a discharge (the order that wipes out debt) will no longer be responsible for paying the debt. So if you want off of the loan, chances are you'll be able to make that happen by filing for bankruptcy.
You have to list your property on Schedule B when you file your bankruptcy petition, which is divided into 35 distinct categories of personal property. For each category, you'll have to list the description and location of the asset, your ownership interest in it and the current value.
The rejection or denial of a Chapter 7 bankruptcy case is very unusual, but there are reasons why a Chapter 7 bankruptcy case can be denied. Many denials are due to a lack of attention to detail on the part of the attorney, errors made on petitions or fraud itself.
Bankruptcy will eliminate most of your debts, such as unsecured debts including credit card bills, medical bills, and payday loans. You may still be required to pay your secured debts, such as your mortgage or motor vehicle loan. Some debts cannot be eliminated by your bankruptcy.
It may be possible to take a person's name off your mortgage documents without refinancing. Ask your lender about loan assumption and loan modification. Either strategy can be used to remove a former co-owner's name from the mortgage.
However, there are bankruptcy exemptions of the estate in Chapter 7 of the Bankruptcy Code; including child support, alimony, social security, court fees and penalties, educational trusts and the assets that the debtor will need to maintain a job and household, etc..
Up to 10 Years Before You File Bankruptcy They look back into your past financial situation to make sure there were no issues with asset transfers. Most go back about two to three years, but depending on your financial circumstances it might be more.
How your property is treated in bankruptcy depends on the type of case you file. (Learn more about what happens to your property in bankruptcy.)Cha...
If you file for bankruptcy, you must disclose all of your real property interests on Schedule A of your paperwork. This means that if you are on th...
If the home that you are on title to doesn’t have any equity (meaning that the balance of the mortgages and other liens on the property exceeds its...
Exemptions protect your property in bankruptcy. In a Chapter 7, they allow you to keep a certain amount of assets by shielding them from the truste...
If the home has nonexempt equity, the trustee will usually argue that it’s property of your bankruptcy estate and can be administered for the benef...
How your legal ownership interest in someone else’s property will be treated in bankruptcy can be extremely complicated. Whether you lose the home...
When you file a Chapter 13 bankruptcy and have a traditional mortgage, the bankruptcy will allow you to reorganize your payments over a longer term. You may likewise be able to restructure your payments under a contract for deed.
When you have a traditional mortgage and file a Chapter 7 bankruptcy, the bankruptcy will not stop a lender from seizing your home if you stop making payments. But the bankruptcy will protect you from being personally liable for any remaining balance owed on the mortgage if the sale of the home by the lender to another buyer does not cover the mortgage amount you still owe.
The bankruptcy trustee’s job is to sell non-exempt property for the benefit of unsecured creditors. That includes personal property and real property. Whether your home is safe from the trustee depends on whether it has any “ nonexempt equity ” which in turn depends on its market value.
If you don’t pay your mortgage, the bank can take the house back by way of a foreclosure. That’s true even after you get a bankruptcy discharge. Because of this, keeping your home means keeping your mortgage. There’s no such thing as a free house.
With debt repayment obligations gone, you can focus on the expenses that really matter: mortgage payments, utilities and regular living expenses.
Catching Up. You can take up to 5 years to catch up your missed payments. But, your monthly income must be enough to cover both the plan payments (to catch up your home loan) and the regular monthly mortgage payments going forward.
Filing Chapter 7 gets rid of most, if not all, your unsecured debts. That means you can get rid of credit card debt , medical bills, old rent payments, some old income tax debt, old utility bills, payday advance loans, and most personal loans.
If you’re overwhelmed with debt, don’t let your fear about losing your home stop you from getting bankruptcy relief. Especially if paying your creditors is putting your ability to pay your home mortgage at risk.
It doesn’t provide a mechanism to catch up on your mortgage payments. This means you’re still at the mercy of the bank and their willingness to modify your home loan to deal with your arrearage. If you can afford to make your full mortgage payments now, Chapter 13 bankruptcy may offer a solution.
Adding to the earlier responses, you may be misunderstanding how title to real estate works. Unlike a vehicle title certificate, you do not have a "title deed." You may have your deed (generally, the original is returned to you after it is recorded with the county), but all that represents is the alleged conveyance from the prior owner to you.
Your bankruptcy attorney did the proper thing in including your home as an asset in your bankruptcy and listing your mortgagee as a creditor. When filing for bankruptcy you must list all your assets and all your debts. All means all, that is all that all means. You cannot pick and choose what debts to include or exclude.
I love the gift idea by Dorothy. I agree with most of the answers but add that even with a reaffirmation it does not mean that payments must be reported either. But simply go to a new lender if your goal is to refinance. Simple as that. If you have a great score and enough time has passed for that type of loan, then that is all you do.
You don't get a free house because you filed bankruptcy. If you don't pay the mortgage, the mortgage company can, and will, foreclose.
A quit claim deed is a legal instrument by which the owner of a piece of real property, called a grantor, transfers his interest in the property to a recipient, called the grantee. The grantor quits his right to claim the property, thereby allowing the claim to transfer to the grantee. Unlike most property deeds, ...
Also, if the grantor should acquire the property at a later date, the grantee is not entitled to take possession, because the grantee can only receive the interest the grantor held at the time the transfer occurred.
For fraud, the bankruptcy filer can spend thousands of dollar in fines as well as going to jail. Bankruptcy fraud is a federal crime.
If his intention is to hide the assets from the bankruptcy court, the court trustee can make a case for fraud under existing bankruptcy laws. Technically, a bankruptcy court can look as far back as necessary to prove fraudulent intent. Therefore, it may be a poor decision in this case for the potential bankruptcy filer to make a quit claim.
Most quit claim deeds are used in the United States to transfer property between family members as gifts. They are rarely used to transfer property from a seller to a buyer, but a quit claim can be use to transfer property from the same person.
Unlike most property deeds, the quit claim deed does not contain any title covenant and makes no warranty toward the status of the property title to the grantee. The grantee is entitled only to what interest the grantor actually has in the property when the quit claim is executed.
What is a clawback provision in a bankruptcy filing? Answer: When you file for Chapter 7 bankruptcy, everything you own on that date (as well as certain property you receive in the six months after you file) is part of your bankruptcy estate. If the property is exempt under federal or state law, you get to keep it.
In Chapter 13, you get to keep all of your property. In Chapter 7, you may lose property that isn't protected by an exemption. Bankruptcy Exemptions – What Do I Keep When I File For Bankruptcy? Bankruptcy exemptions determine what you get to keep during and after bankruptcy -- whether it be your home, car, retirement account, or personal belongings.
When filing for Chapter 7 bankruptcy, many debtors are able to keep most or all of their personal property. What you are allowed to keep depends on what property is deemed "exempt" by your state or the federal bankruptcy exemptions.
A major concern for most homeowners who are contemplating bankruptcy is how bankruptcy will affect their mortgage. The good news is that your mortgage company cannot raise your interest rate or change other terms of your loan to punish you for filing bankruptcy.
Whether you can keep your property in bankruptcy depends on whether you file for Chapter 7 or Chapter 13 bankruptcy. For the most part, you keep your property in Chapter 13 bankruptcy. If you file under Chapter 7, you may have to give up some property (although many filers keep most, if not all, of their property).
If you are not making timely car loan payments, Chapter 7 bankruptcy cannot permanently prevent a car repossession. However, Chapter 7 can temporarily delay the lender from repossessing your car and allow you more time to negotiate or cure your default.
The trustee may ask you for additional documents, like copies of tax returns, house papers, car papers, and bank account statements. Your meeting of creditors may take longer than for filers who are represented by attorneys so the trustee can do a thorough job of examining you under oath.
If you don’t have much more than the furniture in your house and a car or two, it might not be too difficult to keep your property—the key is to carefully list everything you own at a reasonable value. These exemptions vary by state, so this is another area in which your ability to research legal issues will be vital.
For the same reason, your creditors will often look more carefully at your paperwork. Keep in mind that the information you provide the court has to be complete and accurate . You will sign your paperwork under penalty of perjury, and later you will have to testify as to its accuracy under oath.
Even if it looks like you will not have any non-exempt assets , filing a Chapter 7 case pro se is still a daunting task. Since your situation is somewhat out of the ordinary, your trustee will likely take special interest in your case, if only to ensure you have listed everything properly. The trustee may ask you for additional documents, like copies of tax returns, house papers, car papers, and bank account statements.
To some extent, legal representation can indeed be costly. To get quality representation, like most things, you'll need to pay for it. However, before you jump to any conclusions, you may find that it's more affordable than you think. Many consumer bankruptcy lawyers offer a free initial consultation.
No debtor in bankruptcy is left with nothing at the end of a case. In every state, a debtor is allowed to keep a certain amount and value of assets needed to get a fresh start. These are called exemptions, and the amounts differ from state to state.
When you file a bankruptcy to seek relief you are opening yourself up to greater scrutiny for that time period. This does not mean that you cannot continue to live your life and make your own decisions regarding your property, but that you need to make certain that if you are making a property transfer you are following all the rules to the letter. It may seem like a lot of details to keep in mind, but the overall relief that you will get from your discharge will be worth the time you put in now.
The bankruptcy trustee is the administrator who oversees the bankruptcy estate, and part of their job is finding non-exempt (unprotected) assets which can be sold and then shared amongst your creditors.
It’s also always a good idea to track what you do with the proceeds of a sale. It will also warrant a closer look if you sold or transferred property in response to being threatened with a lawsuit. And it is always a problem if you try to conceal the transfer, i.e. not disclose it in your bankruptcy paperwork.
You do have the right to transfer your property at any time. You are not allowed, however, to transfer property for fraudulent purposes. You should always make certain that your actions are above board, otherwise there could be negative consequences. In this article we will examine the different ways that a transfer of property may take place close ...
If you intended to defraud your creditors by making the transfer, the court might deny your bankruptcy discharge altogether (and you might find yourself subject to other bankruptcy fraud consequences, such as criminal penalties ). If the bankruptcy trustee (the official appointed to oversee your case) discovers that you transferred property out ...
If you plan to file for bankruptcy soon after that, you can usually avoid a problem by: 1 selling the property for what it's worth, and 2 keeping records showing that you purchased necessary items with the funds.
The trustee also has grounds to object if you destroyed, harmed, or hid your assets. As a result, it is never a good idea to transfer or conceal property in an attempt to defraud your creditors before filing for bankruptcy. (Learn more about what will happen if the bankruptcy trustee suspects fraud .)
Remember that no matter how long you delay filing, if you intended to commit bankruptcy fraud, you might run afoul of a serious offense, land in a lot of trouble, and find yourself facing criminal prosecution. If you've transferred property and are considering filing for bankruptcy, seek advice from a bankruptcy lawyer.
Valid reasons exist for transferring property before bankruptcy. However, when you transfer property out of your name before filing for bankruptcy, the bankruptcy trustee might be able to avoid the transfer and get the property back for the benefit of your creditors. Whether the trustee will be able to reverse ...
The Bankruptcy Trustee Can Reverse Property Transfers. Even if the bankruptcy trustee can't object to your discharge on the above grounds, the trustee might be able to recover an asset you transferred out of your name if: the transfer was within two years of your bankruptcy filing or within the time allowed for setting aside a fraudulent transfer ...