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  1. #1

    Default Deed Jointly Held Property in Chapter 13

    My question involves bankruptcy in the state of: Florida

    I was all set to file Chapter 7, when my BK attorney informed me that since I own a vacant piece of land jointly with my ex-husband, I had to file Chapter 13! This property was purchased long ago as an investment for my daughter, who was a baby at the time. We held it in both names until we felt she could fiscally handle the ownership. Unfortunately, due to job loss, I was forced to file bankruptcy. The land is paid off and I would like to deed my half to my daughter. This would allow me to convert to Chapter 7. When the trustee calculated my monthly payment, I am now upside down by $200 each month and have had to cash in some of my IRA (over 55...no penalty). Would it be considered fraud by the Trustee if I sign the deed to my daughter, since the original intent was to give it to her anyway? Also, can I petition the trustee to reduce my monthly payment? My lawyer said to just keep cashing in my IRA to make the payments! At this rate, I will have no retirement left and still be upside down! My house mortgage is outside the bankruptcy, so I pay that in addition to the trustee.

  2. #2
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Deed Jointly Held Property in Chapter 13

    Sorry, but you have three choices:

    1. Stay in the 13 and pay the value of the non-exempt property to your creditors. This allows you to keep the land for the future;
    2. Assuming you qualify for a 7, convert to a 7 and allow the Trustee to sell the land or;
    3. Dismiss your 13, you sell the land, you live off the proceeds of the sale, documenting what you did with the $$ and then, when the $$ is gone you file a 7, again assuming you qualify.

    If you :

    1. Transfer the title to your daughter and then convert to a 7 the 7 trustee will undo the transfer and sell the property.
    2. Drop out of the 13, transfer the title to your daughter and file a 7 within 2 years of the transfer, the 7 Trustee will undo the transfer and sell the property.
    3. Drop out of the 13, sell the land, give the $$ away and file a 7 within 2 years the Trustee will seek to recover the $$ you gave away.

    Mind you for 2 and 3 above, while you have to disclose the transactions that took place within 2 years prior to filing, a Trustee can recover a fraudulent conveyance based upon State law which is typically a 4 year look back.

    A Chapter 13 allows you to keep your non-exempt property so long as you agree to pay the value of that property to your creditors. Your intent when you bought the property is not relevant and you certainly cannot just give the property away and expect no repercussions when you file bk.

    Des.

  3. #3

    Default Re: Deed Jointly Held Property in Chapter 13

    Thanks...I did not want to profit from the land, but I didn't want my daughter to be forced to sell her half...I can see how the trustee would look at that, though. Guess I will hold my half until the bankruptcy is complete in 5 years and then deed it to her. I still don't understand their methods to figure out what I need to pay each month...still under water there! My car was included in the bankruptcy and I got a notice that it is now paid off. Shouldn't that lower my monthly payment?

  4. #4
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Deed Jointly Held Property in Chapter 13

    Quote Quoting Maydaycolorado
    View Post
    I still don't understand their methods to figure out what I need to pay each month...still under water there! My car was included in the bankruptcy and I got a notice that it is now paid off. Shouldn't that lower my monthly payment?
    Can't specifically answer your question. Your Plan payment is based upon many factors, including but not limited to:

    Total secured debt that is to be paid including interest
    Total priority tax debt that is to be paid
    Value of the non exempt assets (after consideration of the priority tax claim, if any)
    Mortgage arrears that need to be cured
    Legal fees that are included in the Plan
    Trustee's fee
    What your budget says you can afford to pay. . .

    Des.

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