If I sign over half ownership of my house to a family member, can I file a Chapter 7?

Asked on January 21, 2013 under Bankruptcy Law, New Jersey


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Under federal bankruptcy law there is a time period for a person to transfer assets to a valid creditor so as to avoid a claim by the banktuptcy trustee of a preferential payment. Such time is usually 90 days before a bankruptcy filing.

However, if you are simply transfering ownership of the subject property to avoid creditors such a transfer could be deemed improper by a bankruptcy court if you later file for Chapter 7 protection. I suggest that you consult futher with a bankruptcy attorney as to your intent and if such is allowed under federal law which I do not believe so.

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