Can you sell your property prior to filing bankruptcy?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can you sell your property prior to filing bankruptcy?

My husband is 72 and I am 63. We are in debt for my daughter’s home, car, and personal loans. We bought everything in our names and can no longer afford the $1,600 a month payments we have been making for the last 2 years for her. Her husband often doesn’t work and won’t repay the money. I own my home and I need to know how I can file bankruptcy or what to do so I don’t lose my home and land. Can I sign my property over to my son? Or sell it to him? I don’t know what to do.

Asked on September 26, 2011 under Bankruptcy Law, Oklahoma

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Transfers made shortly prior to filing bankruptcy--whether of money, real estate, or other assets--are often voidable; they can be set aside as transactions made to defraud creditors. This is particulary so  if the transfer is 1) not an arms length transaction--so it's not made between strangers, but rather with familhy members; 2) the transfer is for less than market value (so signing a home over to a child); and/or 3) the transfer is just "on paper" in that the person(s) transfering the assets continue to use it (e.g. you keep living in the home). Therefore, it seems very likely that you would not be able to do this. However, you should consult with an attorney, who can explore your options with you--including possibly suing your daughter and her husband since they have defaulted on your obligations to you and put into this position.


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