Asset question for a chapter 7

[timhelp032]

Hi all, the posts I have read on hear have been helpfull so thank you!

Here is my problem.

My wife is filing a chapter 7 due to my reduction of income over the past 2 years. She does not have an income since we have to small kids.

Here is my problem. Her parents may have her listed on some land that she will get with her siblings if they pass. Now, they are young and in perfect health but I am curious if this makes a difference? I dont want to open an unneeded "can" if not needed. As long as nothing happens in the 180 days post filing?

Also, her family is not aware of our plans so we can not simply ask them if there are any issues. If we did, they would not help anyhow.

Any advice on how we should handle this? I dont want to feel like we are hiding things but I do not believe there is really an issue? Any thoughts?

Also, if there did have her listed on anything, as long as we have no real ownership of anything (ie, nothing on tax returns, so I know of nothing in her name) is she ok to file?

[justbroke]

I think the land issue would depend on how the land is titled. if it's actually a Living Estate, then the property is NOT your wife's. It's only the testator's wish in a will that she receive part of it. If the parents actually already modified the deed and it has your wife's name on it, this will then depend on how it's titled. If it's titled as a tenants by the entirety, then they all own it and non single creditor can touch it, unless the creditor is shared by all... and that's unlikely)

So, check how the land is currently titled. I would seriously counsel you to use a BK Attorney and not attempt this BK on your own. You don't want to mess up with the exemptions!

[timhelp032]

Thank you for your response. I can call the county assesor I would guess?

Also, what if they do not list it...can they force the sale of the property if it is in shared ownership if it is titled wrong?

[justbroke]

Thank you for your response. I can call the county assesor I would guess?

If the records are available on-line, just look at the Deed on line. It will reads something like "John A. Doe and Jennifer E. Doe, and David C. Doe, as tenants by the entireties" if it's the so-called TBE. That makes the ownership almost impenetrable by creditors.

If it's titled with just "and" and there's no declaration, it's probably tenancy in common. You'll have to see how your State deals with the differences, and/or if there's a default if it's not specified. This is why I highly recommend a asset protection attorney.

Also, what if they do not list it...can they force the sale of the property if it is in shared ownership if it is titled wrong?

They can force the siblings to "buy" your share. Or, you can offer to buy your share. Usually you'll get at least a 10% discount on the value. But be fully aware that it is highly likely that an appraisal would be ordered in this situation.

[timhelp032]

If this arises can we just walk from the BK and have it become dismissed? It is scary but I guess I will fight through any lawsuits and collections for the next 5 years vs allow her siblings to know what is occuring.

This is a scary thought. I will face the creditors before allowing her family to know our plight. Even though the land is worth very little and we owe quite a bit...

[justbroke]

If this arises can we just walk from the BK and have it become dismissed?

Not a Chapter 7. You cannot get out of a Chapter 7 unless the United States Trustee and/or the Panel Trustee thinks that continuing won't yield a dividend to the unsecured creditors. Many people have thought they could just "stop" a Chapter 7. Even those who got "smart" and figure they'd just convert to a Chapter 13 and dismiss the Chapter 13, found themselves in a conversion fight to put them back in Chapter 7.

You just need to speak to several attorneys and see your options. I'm not saying that the property has already doomed you. I'm saying to be smart, check out the title/deed, consult with several attorneys, and figure it out. If you don't... the creditor may still get to your inherited property!

Make no mistake, that asset protection planning is in your best interest. That may include filing bankruptcy!

[timhelp032]

I have read a little about the process on here. If she does not go to the 341 will they dismiss it? I would assume that if there is an issue the trustee will bring it up before the 341?

I feel awfull even thinking about this process.

[timhelp032]

Come to think of it, I may be viewing this all wrong. BK is a tool put in place to help people who are facing hardship like us. Maybe I should just trust in the system and let an atty guide us through, come what may.

[justbroke]

I have read a little about the process on here. If she does not go to the 341 will they dismiss it? I would assume that if there is an issue the trustee will bring it up before the 341?

No, Trustee's don't bring up "issues" before or potentially even during the 341 Meeting. They barely look at the case until just before the 341 Meeting. They have plenty of time to look at things anyhow in order to administer the Estate. You just go in "knowing" that your assets are exempt or non-exempt. You should know this via your attorney anyhow.

Now, yes, bankruptcy is a tool specifically to discharge debt. There is not a more powerful tool when it comes to finances.

(By the way, not attending the 341 Meeting "might" get your case dismissed. If the Trustee sees juicy assets, s/he can just keep on administering the case... without you. This doesn't happen often, but if the Trustee suspects that you're now trying to hide an asset... s/he may pounce.)

[timhelp032]

Well, if not disclosed and listed correctly on the deed. Will they even look it up?

[justbroke]

Well, if not disclosed and listed correctly on the deed. Will they even look it up?

Trust me... they will be doing asset searches in at least the County in which you live, and maybe Statewide. That's their job. Your job is to be honest and list all your assets. You or your attorney then apply exemptions or claim some statutory exception (like tenants by the entireties) to protect the property. Anything not protected, is fair game.

Never ever try to hide assets from the Trustee. It can end very badly for you.

[frogger]

Never ever try to hide assets from the Trustee. It can end very badly for you.

Exactly what my Trustee stated before the 341 meetings......

Be honest, be truthful, and if you haven't been totally honest, now's the time to fess up and let's get the paperwork corrected for if you don't get it corrected now, and I (Trustee) find anything, it's going to get very ugly for you.

[mtbc]

the land is worth very little

If it does turn out to be one of your wife's assets, she may be able to exempt it, and if not she may be able to arrange some payment(s) to the trustee for most of the overage such that they get cash from her instead of the hassle of trying to fuss with real estate sales, not that she automatically has such an option. This partly depends on what exemptions she can claim (depends on what state she's lived in the past few years) and how much her share, if any, is actually worth.

With luck it's not titled such that it's presently hers anyway!

[liboton21]

How big is the land? In SoCal, I have 3 land property, 2 in NM and 1 in NV. Trustee declared no asset for distribution. I guess it all depend if there is a value or most trustee just looking for a quick money he can pay the creditors. Since most of the land has no value these days he will just abandon or as suggested use the exemptions.

[justbroke]

Exactly. Most Trustees are looking for "quick" money. What the definition of "quick" is actually varies by Trustee. Some are willing to wait a year or two... others want something in months.

Many times, if it has little to no equity or value, the Trustee will abandon it.