Expert: Terry Leeders - 4/11/2007

Question
I (my husband and I) are pursuing Chapter 7; however, just last month, we were removed from the title on my mother's home, whereas is 2001, we refinanced the home to get money out to pay past debt (and were only on title for that reason; she was on title alone prior to that). Will we still be able to file for Chapter 7 or is it true that we may have to wait a year to do so? Can we be forced to sell my mother's home (we do not live in it by the way) since we were on title previously or is it safe?  

Answer
Excellent question Julie.

The short answer is - it depends.
If done last year, it is considered a transfer of assets( taking your name off of property) and has to be disclosed in your case.  It will come down to the value of what you transferred. (how much equity you gave) Therefore, to determine if it will affect your case your attorney would have to analyze the fair market value and mortgage balances at the time you did it.  It would also depend on what debt you paid and how much you gave them.  That analysis will determine when would be the best time to file, and/or under what chapter would be best.  If you do not have a lawyer, feel free to contact me to get you a free consultation.
Thanks
Terry Leeders