Previously owned property transfered legally, but now might sell.

[StacyAnn]

About 8 months ago we gave up a plot of land that our in-laws were co-signers on because we couldn't make the payment any longer. Basically, the in-laws paid off the loan and we signed it over to them. Attorney said that we are okay on that because we didn't gain any money, and it was long enough ago, it was obvious that we lost the land to our co-signers so their credit wouldn't be messed up also.

Now, we owe in-laws about $60K. Property is in THEIR name only, has been for these last 8 months. The real estate listing is also in their name only. If they sell the property for $99K, and we owe them $60K, after the say $9K in taxes and real estate fees, they would give back to us about $30K.

At first I was thinking I would avoid BK by negotiating with the credit cards and hopefully pay them all off at 50% on the dollar. Now, I started thinking, if this property isn't in our name any longer, is it better to have in-laws wait to pay us that amount...we have a $27K second mortgage that we can't afford. Would there be a way to pay off that second mortgage with that money and still claim BK? Or, just have in-laws keep money until the future. We are behind on medical bills and snow plowing from Winter.

Any ideas on how this will be handled? Any ideas and advice? My attorney is impossible to get a hold of!

[OhioFiler]

I'm confused.

You voluntarily surrendered your interest in the property to your in-laws who then paid off the mortgage.

Your in-laws hold the deed to the property and have listed it for sale.

You owe your in-laws $60,000 for some reason not given.

If your in-laws sell their property they will give you $30,000.

I would not be planning on filing BK with this situation going down. It sounds like you've only transferred the property to your in-laws on paper but still have 100% interest in the property and stand to gain $30,000 if it sells.

This is commonly referred to as fraud in the BK courts.

[StartingOver08]

Remember the Trustee has the right to review all of your real estate transactions for the last TEN YEARS. Yes, 10 years. Yes, the Trustee does this routinely. It is public record, all the Trustee has to do is look at the filings in your area under your name and the entire history of everything you ever owned pops up. Plus you are required to list it in the petition.

8 months is nothing. If your attorney advised you that it is ok - find another attorney. OhioFiler says it simply: BK fraud.

[StacyAnn]

Selling property

Father-in-Law paid the land loan off to save his credit since we couldn't make the payments. The $30K that we would "gain", would be breaking even from the $30K that we paid into a no interest loan on the property. Still, I'm not sure how BK trustee will look into profit / loss in such a transaction. Father in Law's name was on the deed since the day we bought it. We just couldn't afford the payments any longer. Had the property sold for the $150K that it was contracted with a buyer for, we wouldn't be in this mess...but buyer backed out and therefore we couldn't pay off our debt. Now, the property might sell for 99K, after 9K in realtor fees and taxes, we are down to 90K, then the 60K owed to pay father in law back on the loand, we are left with 30K, and 60K left owing credit card companies. Would the judge take that $30K to distribute to creditors, thus forcing us into chapter 13?

What do you all think our chances of getting the credit card companies to settle? We owe $60K and if we decided to settle with the card companies instead of filing BK, I wonder what the chances of us getting those cards paid off for $30K.

I already paid the attorney his fees, however we haven't filed yet. Do any of you know if an attorney will work to negotiate settlements with the cards to avoid bankruptcy?

Or, will

Thanks