Expert: Terry Leeders - 5/10/2010

Question
We transferred a property to our daughter in 1/2008.  The house is paid off.  We live in the property now, due to our financial situation over the last few years.  If we file chapter 13, can they take my daughter's house?

Answer
No the house will not be taken if you file chapter 13. Chapter 13 is designed to protect assets.  The trustee will review the transfer, and your plan must protect the equity in the home if the transfer would fall under the bankruptcy preference rules.  You will pay back enough of the unsecured debt to protect the transfer. Meet with a local bankruptcy attorney to help design the case.  Thanks for your question and good luck.