Bankruptcy: I’m on my Mom’s House

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I need to file a bankruptcy, but I’m on my Mom’s House??? My mom put me on the deed to her home so as to protect it during the probate process, but it’s not my house.

In a bankruptcy, the Court will look at all of your assets and debts, that includes any property that your name is on – including your mom’s house. That does not necessarily mean you cannot qualify for a bankruptcy, but it is something that our attorneys need to know about and to manage as part of your debt resolution.

The first thing to remember: please do not remove your name from the property while anticipating a bankruptcy. If you remove your name, the Court can consider that as a transfer of property, something you are trying to hide from your creditors. The Court and Trustee will have the right to “void” that transfer, and possibly sell that property to pay toward your creditors. Leave your name on there until you have talked with our attorneys.

Second, the value of the property will be considered when determining a bankruptcy. In today’s market, that home may hold less of a market value (although a priceless sentimental value) than anticipated and may not even effect the type of case we recommend you file.

Third, how many names are on that deed now? Often if the deed was changed for probate purposes, the deed will list all of your siblings. If your mom, you, and your two siblings are on that deed, now you only have a 1/4 interest in the property/equity in which we are considering for purposes of bankruptcy.

What is important to know is that we are here to protect you and your assets, we will not file a bankruptcy that looses any property you choose not to give up. We may have to file a bankruptcy you did not consider in order to protect that home, but we will make sure it is protected as part of your consultation with our office.

Please contact our Westchester Bankruptcy Attorneys today at (914) 864-2465 or (845) 628-4301 to discuss which option is right for you. Our Westchester lawyers will work with you to manage your debt and help you understand your rights under the bankruptcy code.