Homestead and bankruptcy pre planning. Is this legal?

[scottyrox]

As i have stated i retained an attorney(whom is not answering my emails about these things) to file chapter 7. I have the house i live in as declared homestead, but im putting it up on the chopping block. I also have 2 parcels of land, one 20 acre piece that im gonna give to the trustee, and another 3 acre piece I was gonna give up. I currently have alot of unexempt possesions i was ready to give up, because my attorney hasnt explained anything about pre planning or exemtions at all.
My question is this. What if i postponed my chapter 7, and instead of just giving the bank my 3 acre parcel, I put a mobile home on it and declared it my homestead. I would liquidate all of my non exempt assets and use the money to set up my next residence. then afterwards file the chapter 7.

[scottyrox]

my attorney said "I like the way you think" which is encouraging. He also said we gotta be careful not to raise red flags, but the basic idea may not be out of the question. any other insight or constructive critisism is more than welcomed.

[backtoschool]

You have to be very careful about fixing the homestead up too much. Putting non-exempt money into increasing the value of an exempt asset like a homestead, is considered abuse and your case could be dismissed for totality of circumstances by the US Trustee. In fixing up the house you would have to not make any material improvements that increase its value. You could stock up on food, buy some furniture (do NOT put it on a credit card!) buy some pots and pans, etc, but you cannot put in a hot tub, turn the trailer into a deluxe double wide trailer, etc....

It's a fine line. Making the trailer your homestead is fine. Keeping the land is fine. Putting a really nice house on the land is not fine.

[despritfreya]

As i have stated i retained an attorney. . .to file chapter 7. I have the house i live in as declared homestead, but im putting it up on the chopping block. I also have. . .another 3 acre piece I was gonna give up. I currently have alot of unexempt possesions. . . My question is this. What if i postponed my chapter 7, and instead of just giving the bank my 3 acre parcel, I put a mobile home on it and declared it my homestead. I would liquidate all of my non exempt assets and use the money to set up my next residence. then afterwards file the chapter 7.

In theory and in practice this may work but you and your attorney need to be mindful of 11 USC 522(o) which is a provision that allows the Trustee to surcharge your homestead for converting non exempt assets into exempt by sinking the $$ into the homestead. This provision does require a finding that your actions were done with the intent to hinder, delay or defraud creditors and, as a result, is not routinely used - but you need to be aware of it.

Des.

[scottyrox]

actually if i was to do this, the place would be bare bones...i could probably get enough money to buy a crappy trailer and put it on the property. Place wouldnt be at all the luxury crib. Just a trailer on a parcel basically. Honestly im broke, im just tryin to save something before i lose everything ive worked my entire life for.