What constitutes a fraudulent transfer for bankruptcy purposes?

Get Legal Help Today

 Secured with SHA-256 Encryption

What constitutes a fraudulent transfer for bankruptcy purposes?

Nearly 2 years ago I bought a home from my parents on land contract for $35,000. My parents own the property, they have no mortgages or liens on it. My parents are thinking about bankruptcy and want me to get a mortgage for the house, give them $35,000 so they can buy themselves another house before filing chapter 7. First off, is that fraudulent on their part? And if I am not able to qualify for a mortgage, do I lose my home?

Asked on February 15, 2013 under Bankruptcy Law, Indiana

Answers:

eric redman / Redman Ludwig, P.C.

Answered 8 years ago | Contributor

your parents have a 35000 asset now that they cannot protect- your land contract/house.

if they get the 35000 and buy  a house to live in it will be protected under indiana law.  there is nothing wrong with what they are trying to do.

if you have a valid land contract- is it recoreded in the county?- then you have a right to keep paying their bankruptcy trustee and keep the house.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption