Transfer of property/exemptions

[LarryC1]

9 months ago I transferred property to my daughter (real) and now considering bankruptsy Cpt 13. The property is less in value than the exemption allowed in NC ,can I list it and have it voided by the trustee and then claim it as a exemption and not worry about a illegal transfer or will I lose the right to the exemption. Hope I explained myself right.

[AngelinaCatHub]

Well nine months ago you did not intend to C13 did you? If so, this sounds innocent and not a planned event to hide money. I would list it with an explanation on the paperwork that you were attempting to free yourself of bills. If you sold it at fair market price and not some ridiculously low price you would be fine. Hide nothing in bk. Don't make mistakes like we did. Educate yourself and the C13 and C7 books from Nolo Press are very good. 'Hub

[frogger]

not worry about a illegal transfer

To start with, it's not an "illegal" transfer. There was nothing illegal about doing the transfer at all. While it may present a minor glitch in the process, just make sure that you disclose everything, and it will not be a problem.

[treehugger1]

To start with, it's not an "illegal" transfer. There was nothing illegal about doing the transfer at all. While it may present a minor glitch in the process, just make sure that you disclose everything, and it will not be a problem.

In many states, including mine, if you are insolvent at the time of a transfer of assets, then this is illegal if the intent was to "keep/hide" assets from creditors. You might do well to educate yourself with respect to your state transfer laws, state BK rules, and any overlap between the two. These vary by state. It appears that real property was involved, so you definitely want to perform your own due diligence.

Just my opinions.

[LarryC1]

My question is ,if the trustee voids the transfer-does the transfer value go back into the bankruptsy estate and then does the petitioner still get the exemption for the amiunt of the property value under the homestesd amount?

[frogger]

In many states, including mine, if you are insolvent at the time of a transfer of assets, then this is illegal if the intent was to "keep/hide" assets from creditors.

Therefore, the transfer would only be "illegal" if not disclosed.

Preferential, yes. Illegal, no.

[catleg]

Darn it, I remember reading a good article somewhere with a strategy that involved transferring such an "improperly transferred" asset back to the original owner, but I can't remember where I saw it.

So basically consider the possibility of transferring the asset back to you for whatever you were originally given for it (if you still can afford to).