Posted on: 08th Dec, 2006 03:18 pm
can daughter quit claim property to me prior to filing bankruptcy without it being fradulant and illega
Is this legal? Is there a time limit under which it could be legal? If I participated would I be liable for fraudulant action? Is my wife at all responsible?
Rouellette,
If your daughter quit claims the property to you within 1 year before she files the bankruptcy petition then it will be considered a fraudulent transfer and the bankruptcy trustee may reverse any such transfer.
If your daughter quit claims the property to you within 1 year before she files the bankruptcy petition then it will be considered a fraudulent transfer and the bankruptcy trustee may reverse any such transfer.
I too agree. Why the transfer will be considered fraudulent is that it may be an taken as an attempt by the person filing bankruptcy to hide assets from his/her creditors.
If a person transferring the property 4 years prior to filing bankruptcy does not get an equivalent value in return, the bankruptcy trustee will ignore the transfer.
The trustee will retrieve the property or equivalent cash from the person to whom property is transferred. So, if your daughter quit claims her property without receiving any payment for the interest conveyed, the trustee may recover the property from you.
But if there is a loan against the property, then your daughter needs to take permission from the lender before quit claiming.
The trustee will retrieve the property or equivalent cash from the person to whom property is transferred. So, if your daughter quit claims her property without receiving any payment for the interest conveyed, the trustee may recover the property from you.
But if there is a loan against the property, then your daughter needs to take permission from the lender before quit claiming.