why attorney asks for deed to house during bankruptcy

What happens in bankruptcy if I am on the deed to someone else's home?

Mar 19, 2011 · Answered on Mar 21st, 2011 at 2:57 PM. Your obligation to pay on any debt will be discharged through bankruptcy (unless it is a non-dischargeable debt). If you are no longer interested in keeping the home, they will sell the property in bankruptcy to satisfy the mortgage (to the best of their ability) and you will no longer have to pay.

Can I do a deed in lieu with active bankruptcy?

It is a common practice for people declaring bankruptcy to transfer their assets to someone else just before declaring bankruptcy in an attempt to keep that property from being used to satisfy money owed to creditors. Hiding a Quitclaim Deed Transfer from a Bankruptcy Court

What happens if you sell a house with a quitclaim deed?

The debtor’s property was transferred, removed, destroyed, or concealed. The debtor engaged in such acts or permitted his authorized agent to do so. The act was done within one year of the bankruptcy filing. The debtor had actual intent to hinder, delay, or defraud a creditor or an officer of the bankruptcy estate.

Can I sell or transfer property in a bankruptcy?

7031 Koll Center Pkwy, Pleasanton, CA 94566. master:2022-01-25_10-31-26. Yes, you can file for bankruptcy if you own a home. You can even file if you co-own a house or hold the home in trust for someone else. But in each scenario, you'll run a higher risk of losing the property in bankruptcy if you don't live in the house.

What happens to house during bankruptcies?

If you kept your house throughout the bankruptcy process, you are free to keep your home after the bankruptcy – as long as you continue to pay the mortgage. ... However, if your income will not allow you to make your mortgage payments, the bank may eventually foreclose on your home.May 19, 2021

Can they take your house in bankruptcy?

Alberta's Civil Enforcement Act, in addition to the equity in your home, is the primary deciding factor in determining if you can keep your home. If the equity in your home is $40,000 or less, it is entirely exempt from collection during bankruptcy.

What assets are protected from creditors?

Options for asset protection include:Domestic asset protection trusts.Limited liability companies, or LLCs.Insurance, such as an umbrella policy or a malpractice policy.Alternate dispute resolution.Prenuptial agreements.Retirement plans such as a 401(k) or IRA.Homestead exemptions.Offshore trusts.Oct 21, 2021

What happens if one person on a mortgage files bankruptcy?

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.

What happens if you don't keep your home?

If you are no longer interested in keeping the home, they will sell the property in bankruptcy to satisfy the mortgage (to the best of their ability) and you will no longer have to pay. It will show up on your credit report as discharged in bankruptcy.

Does bankruptcy remove your name from your deed?

No, filing bankruptcy does not automatically remove your name from the deed to your home. Your question does not give any indication of why you want to remove your name from the deed to your home.

What is a quitclaim deed?

Binding Nature of a Quitclaim Deed. A quitclaim deed is a binding legal document, the same as a warranty deed or other legal documents that may be used to transfer real property from owner by one person to another. This is true even though any individual can execute a quitclaim deed, as opposed to having the deed executed ...

Can you hide a bankruptcy deed?

It is generally unwise to attempt to hide the transfer of property from the bankruptcy court even if that transfer was performed using a quitclaim deed. As noted above, if a quitclaim transfer of property was executed properly and filed with the county, it is considered a binding legal transfer and is available for viewing in the public record. A bankruptcy court can potentially identify through the public record any property that you have that you have failed to list in your bankruptcy. Such an attempt to hide assets and deceive the bankruptcy court can result in your entire bankruptcy being thrown out.

Can you transfer property to someone else before filing for bankruptcy?

If you need to declare bankruptcy and you transfer property you previously received through the filing of a quitclaim deed back to the original property holder (or to anyone else for that matter), the bankruptcy court will by default assume you are trying to hide the asset and commit fraud. It is a common practice for people declaring bankruptcy to transfer their assets to someone else just before declaring bankruptcy in an attempt to keep that property from being used to satisfy money owed to creditors.

Can you transfer property from one person to another?

A quitclaim deed, which is often mistakenly referred to as a “quickclaim deed,” allows someone to transfer his rights to real property , such as real estate, to another person.

What happens if you file for bankruptcy?

This means that if you are on the deed to someone else's home and file for bankruptcy, what will happen to the home will depend on many factors including: 1 whether the home has any nonexempt equity 2 the type of bankruptcy you file 3 the circumstances surrounding your property interest 4 the language in the deed 5 your state's property laws, and 6 the rules in your jurisdiction.

Why is Chapter 7 bankruptcy called liquidation?

Chapter 7 bankruptcy. Chapter 7 is called a liquidation bankruptcy because the trustee is able to sell your nonexempt property to pay back your debts. This means that if you can't exempt all of your property, it may be at risk in Chapter 7 bankruptcy. (Learn about how exemptions protect your property .)

Do you have to disclose your real property when filing for bankruptcy?

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 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).

Can you claim a home in bankruptcy if you never paid?

If you have never made any payments on or improvements to the home or received any benefits from it, you may be able to argue that you hold only bare legal title and no real ownership interest that can be administered in bankruptcy. But even so, many courts have still ruled that the home is part of your bankruptcy estate.

Can you sell your home in bankruptcy?

If you do have an equitable interest in the property, then the home becomes part of your bankruptcy estate. Depending on the amount of your equity, the bankruptcy trustee may be able to sell the home to repay your creditors in a Chapter 7 case. If you file for Chapter 13 bankruptcy, you may be required to pay a significant dividend ...

What is a quit claim deed?

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, ...

Is bankruptcy fraud a federal crime?

For fraud, the bankruptcy filer can spend thousands of dollar in fines as well as going to jail. Bankruptcy fraud is a federal crime.

What is a deed of trust?

A mortgage or deed of trust is a voluntary lien. Liens are not affected by Chapter 7. You do not owe the money personally anymore because of the bankruptcy discharge but the mortgage company can foreclose on your house to satisfy the balance of the loan. The house is security (collateral) for the loan. It is as if the house itself owed the money. The promissory note you signed when you got the loan is transferable and it was obviously transferred to another company that now owns it and can foreclose on your house. You legally still own the house (subject to the mortgage) so the bank has to foreclose and sell the house at at trustee's sale where the highest bidder gets to buy it and gets title to it. Most of the time the mortgage company buys the house since the debt is usually more than the value of the house. You do not need to sign the house over to the mortgage company. Just let them foreclose and sell it at a trustee's sale. The bank will probably end up being the buyer by offering the amount of the debt. You will then be asked to move and if you do not move you will have to be evicted just like tenants are evicted when they don't pay the rent. The buyer, most likely the bank, will probably offer you some money to leave quietly and fast. (Didn't your bankruptcy attorney explain all this to you?)

What does it mean when a mortgage is discharged?

A discharge in bankruptcy means there no longer is personal liability on the mortgage. However, the lender retains the security interest in the property. This means that in order to keep the property the (discharged) loan must be fully paid per the contractual monthly payment. Although you are still the owner of the property ownership is subject to the secured interest of the lender until the security interest is paid.

Can a mortgage be erased in bankruptcy?

I think you are confused. A mortgage IS a lien and it is not erased by bankruptcy. Your bankruptcy discharged the debt but did not erase any liens. Discuss this with the attorney who handled your bankruptcy.

Can you discharge a mortgage loan in bankruptcy?

Note that in a bankruptcy, you can never discharge a debt secured with collateral such as real property for instance. So even if you file bankruptcy, your debt and your lien remains the same, and you may either re-affirm the debt by continuing to pay the mortgage or go delinquent and relinquish the house. It is not uncommon for loan owners to sell the loan to other companies as it has happened in your own case,. In any case, your name is still on the deed and the lenders are still your lien holders, your filing bankruptcy has not changed the ownership, even though the owners of the loan may have changed. all you need do is continue paying your mortgage and you will be sure to keep the house for as long as you are fulfilling this obligation.

Tony E Carballo

Quitclaiming to someone else who is going to file for bankruptcy is a way to delay the foreclosure. By transferring the title to you by quitclaim, the automatic stay that takes effect when you file for Chapter 7 bankruptcy will prevent the bank from selling the house without first seeking permission from the bankruptcy court.

Mitchell Paul Goldstein

Your cousin may be required to get the court's permission to sell the house. You will be required to find a company to finance the purchase. If the sales price is not enough to pay off all mortgages, then the creditors will not agree and neither will the court...

Gerald Lawrence Wolfe

The answer is a resounding NO. Executing a quitclaim deed can only create more problems as it will be deemed a fraudulent transfer. A quitclaim does NOT transfer the obligation under the deed of trust and note.#N#I HIGHLY recommend your cousin and you call my office to set up a free...

Alan D. Walton

If she has equity in the home, she could run afoul of the fraudulent transfer laws. Right now, she is protected by her chapter 13 automatic stay, but if she wants to surrender the home and either dismiss her 13 or convert it to a chapter 7, then the lender will proceed with foreclosure if it is not being paid...