Fraudulent property transfer? How would this work?

[cupcake]

My mother is in the middle of a messy divorce that's been going on for nearly a year. By choice, I don't know a lot about what is going on (I want no part of it) but they seem to mostly be squabbling over debts.

The divorce attorneys have been discussing a joint CH7 for them before their divorce is final but there is one big problem. My grandparents put my mother's name on their home/property title probably 20 or more years ago so that when they die the property will go directly to her with no probate court involvement. The house is paid for and I'd estimate that it's worth somewhere between $75k-$100k.

I explained to her that my grandparents' home/property will be considered an asset in her BK. What I don't know is what would happen to my grandparents' interest in the property if she went ahead and filed.

My questions:

1) Can they transfer the property out of all three names and back into just my grandparents' names?

2) If that occurred, would that be considered a fraudulent transfer? My mom has NEVER lived in this house. In fact, she owns a house next door that she's been living in for the past 40 years. She made no payments on my grandparents' home and has never paid for insurance or taxes. Would that be considered by a trustee or not?

3) If she filed anyway how much would a trustee be entitled to take and what would happen to my grandparents' interest in the property?

4) My grandparents have a small home equity loan on the property; what would happen with that?

Thanks for your help!

[StartingOver08]

The BK look back period for real estate transfers is 10 years.
Do NOT transfer the house. Speak to a real BK attorney for ramifications, but it would seem to fit the fraudulent transfer rules (transferring property to avoid creditors).

Read this: http://www.************************/...+Podcast%29%29

Is the debt all joint type debt or is it primarily in the name of one or the other party?

[AngelinaCatHub]

If there are three names on the Deed, each name has a 1/3 undivided interest in the house. The house cannot be sold unless all three agree. If on person dies, the other two has a 1/2 undivided, and so on. Now you need not take any gift and can rescind a gift or a willed item. At this time, I would not attempt to change anything at all. Your Grand parents can change the Deed with her permission which gets sticky, but if they have a paper trail that they were originally on the Deed alone, it would not be illegal. After all, they are not in bk. Is your state a homestead state?

Also, consider how the Deed is worded. For instance to simplify (and I'm not a lawyer) if you put a car title in an "or" condition, either A or B own the car in it's entirety. If you put it in an "and" state, both A and B own the care by half.

This is one for real good research. Don't change the Deed until you REALLY know by way of your local and State law. 'Hub

[AngelinaCat]

Are the grandparents in good health? God forbid, but they aren't likely to die in the 180 days following a 341 are they?
[I am sorry; that sounds so crass ]