Posted on: 10th Sep, 2010 04:25 pm
in early 2006, my husband and his mother were on a home mortgage together. their combined interest (down-payment) was $50k. in late 2006, she signed a quit claim deed releasing her interest solely to my husband. however, her name remained on the loan for nearly another 2 years. she has a primary residence in ca, and basically helped her son (my husband) get back on his feet after his divorce, by co-signing with him on his/her loan. she signed her interest over to him and i in late 2006 as a gift - we were married two weeks after the document was notarized and recorded.
now, in 2010, she has filed bankruptcy in ca. the trustee in ca thinks she and her son committed bankruptcy fraud being as she signed over interest in what's now my husband and i's house. she has about $650,000 in debt and the only equity the trustee can come up with is the money she gifted to us back in late 2006. although the trustee hasn't submitted a case against us, do you think he really has a leg to stand on as far as suing us for $25k?
now, in 2010, she has filed bankruptcy in ca. the trustee in ca thinks she and her son committed bankruptcy fraud being as she signed over interest in what's now my husband and i's house. she has about $650,000 in debt and the only equity the trustee can come up with is the money she gifted to us back in late 2006. although the trustee hasn't submitted a case against us, do you think he really has a leg to stand on as far as suing us for $25k?
Hi Brit,
The property was transferred way back in 2006. In that case, it shouldn't be considered as a bankruptcy fraud. Any transfer of property just before bankruptcy filing is considered as a fraud. I don't think the trustee can sue you for this. You should contact another bankruptcy attorney and take his opinion in this matter.
Thanks
The property was transferred way back in 2006. In that case, it shouldn't be considered as a bankruptcy fraud. Any transfer of property just before bankruptcy filing is considered as a fraud. I don't think the trustee can sue you for this. You should contact another bankruptcy attorney and take his opinion in this matter.
Thanks