Have a piece of property in another state...

[sockmonkey]

Hi all - long time listener, first time caller...

Nutshell:
Texas resident, Texas business.
Own an S-corp.
Personal finances fine, business closing due to economy.
Plan on dissolving business entity and filing for personal BK to protect personal assets.

I have spoken to an attorney on an initial visit, and passed the means test for Ch 7 Federal (not Texas option)

My question:
I have a piece of real estate in far off location that is remote. Maybe worth 15,000 on open market. Cannot get to it by car, have to boat in or fly in.
It is close to being paid off and once everything is finalized here, that is where I am going to live for a few years to reflect on my mistakes.

Is this property something the Trustee is going to be interested in seizing?

I appreciate your input, here and all over this website, thanks for being here.

[LadyInTheRed]

Yes, the trustee will most likely be interested in property worth $15,000 if you can't exempt it. He doesn't have to get to it, he just has to be able to sell it.

If the state the property is located in has a large enough homestead exemption or will allow you to use federal exemptions, it may make sense to move before filing BK and wait the required time to file in that state. You should consult with an attorney in that state about that possibility.

ETA: Where are my manners? Welcome to BKforum!

[sockmonkey]

Appreciate your reply. I guess I will try to sell it over the next few months, but only accessible certain times of the year, so it will be a hard sell.

[df04527]

I believe selling it then filing means the trustee can undo the sale as well. I believe you have to wait a year or more. Not my area, others will be along to give more specifics shortly just a heads up that it could be an issue.

[sockmonkey]

I thought arm's length transactions were fine, especially if the money is spent on necessities (?)

[LadyInTheRed]

You can sell it. If it's to an "insider", like a family member, you need to be ready to prove they paid fair market value.

[AngelinaCat]

No matter what the value of this piece of property is, if a potential user/renter/buyer cannot get to it without a great deal of trouble, the trustee may not think it worth the bother. Usually an easement for ingress/egress usually comes with the title to a piece of land like this. If not, you could potentially be sued to make you provide one. So what's the deal??

And to echo LITR, welcome to the forum....