Posted on: 18th Jul, 2012 07:13 am
If I set up a living trust and buy a house cash for about $17,000.00 is that house protected? Or is it subject to the bankruptcy?
Hi buyer!
Welcome to forums!
If you buy a house with cash money, then it will be free of any kind of debt. When you file bankruptcy, you will have to list all your assets in it. Each state has its own bankruptcy exemptions which protects certain assets from being liquidated to pay creditors. You need to understand whether it will become part of the bankruptcy estate and whether it can be used to pay creditors with. You can contact your bankruptcy attorney for the same. If trust is a revocable living trust, at the time the bankruptcy filing, then generally courts rule that the trust is not a part of the bankruptcy estate, if it contains a valid spendthrift provision.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you buy a house with cash money, then it will be free of any kind of debt. When you file bankruptcy, you will have to list all your assets in it. Each state has its own bankruptcy exemptions which protects certain assets from being liquidated to pay creditors. You need to understand whether it will become part of the bankruptcy estate and whether it can be used to pay creditors with. You can contact your bankruptcy attorney for the same. If trust is a revocable living trust, at the time the bankruptcy filing, then generally courts rule that the trust is not a part of the bankruptcy estate, if it contains a valid spendthrift provision.
Feel free to ask if you've further queries.
Sussane
Hello Buyer,
When it comes to something as serious as your financial future, the cheap way isn't necessarily the best way. Getting protection from foreclosure, credit card debt help and relief from the harassment of creditors is no simple matter.
:idea:
When it comes to something as serious as your financial future, the cheap way isn't necessarily the best way. Getting protection from foreclosure, credit card debt help and relief from the harassment of creditors is no simple matter.
:idea:
