:help :help
I have a family member that has a second home and need protection so creditors do not take there second home from them. They have some equity in the property.
I was thinking of a warranty deed or a trust, any advise would be appreciated.
Thankyou
:smile
Sounds like the judgment already exists. Any transfers are suspect at this point and very little planning will work. In any case, it is going to be very expensive. Another option is to sell the property and put the cash into exempt assets, like life insurance or an annuity.
the family has not even filed for a bk as of yet and are preparing themselves within the next 3to5 months to file and want to make sure that the 2nd home is within a safe posiotion from creditors,your help is appreciated
thankyou
BK has a look-back provision. The only way the home will stay out of control of the trustee is to sell it and place the proceeds in something exempt. There are ways to sell property and retain the right to occupy it for a period of time. There are options. They should sit with a BK planner to determine what’s best.
BLL
I appreciate your response for everything.
I was wondering is it possible to proceed with a warranty deed, land trust ??
When you state sell property and have right to occupy, what manner or direction that would be, please give me some examples or literature to read for that direction.
thankyou
Possible? Yes, it is possible. Will it work? I suggest your family member meet with a bankruptcy attorney to do pre-BK planning. I only have a superficial understanding of the new BK law.
The simplest may be a life estate. Another option is a personal residence trust, qualified or non-qualified. However, I suspect the trust option may be too expensive given the current situation.
The reality is that the trustee will sell non-exempt assets to pay the creditors and then the debtor will be placed on payment plan for a number of years. They may be able to keep the property if it has a mortgage and they continue to pay it, but I’m running out of ideas at this point as I am not a BK attorney, nor do I do pre-bankruptcy planning.
Thankyou :biggrin :biggrin
I am in the process of filing bankruptcy and one of the questions is have we sold or transferred anything with a title in the last 2 years.
We also have a second home but it has no equity. My mother lives in the home. This property will be exempt from any action.
There is an equity exemption and I believe every state is different. I know its federal but I believe the feds allowed every state to make its own exemption policy.
In todays market, is it possible the property has no equity?
They need to get some sonsultations so they can be in a good position