Raw land in Bk

[TryinHard]

Hello all,

About 1 year ago, my parents completed a warranty deed (no money was transferred) to transfer raw land/vacant worth about $10000.00 into my name. My mom was trying to qualify for Health services and she was told she could not have any assets. Her and my dad also wanted to be sure if something happened to them, that I had rights.

I havent seen a lawyer or anything, but I am pretty sure I am going to have to file bk.

What happens to this land if I have to file for a Chapt 7 or Chapt 13 bk?

Thanks

[BassBoy]

I have moved your thread here as it is related to BK discussion

[kiddles]

Generally, if you can't cover it with expemptions, it may be seized by the trustee and sold to pay your creditors.

What state are you in? Some states' wildcard exemption is fairly generaous - especially if you don't use your entire homestead exemption.

[keepmine]

In a 13 you can keep the land. In a 7, unless you have enough exemptions to cover the value of the poperty, you'll lose it.

[TryinHard]

Thanks for the replies.

I am in AZ. Can't I just Warranty Deed it back into their name?

[CindyLou]

Here are the exemptions. I am not sure if it would qualify if you do not occupy it???
You cannot transfer the deed that would be condsidered fraudulant. Techinically it was probably also fraud when your mother did it to get health benefits. (not being judgement, just straight foward.) In BK there is a look back period. If its freind or close family it can go back even 2 years. Ask an attorney if youj can still use the homestead. You may be able to use it if you can show that you intended to occupy it at sometime in the future but never built on it.



HOMESTEAD


Real property; an apartment or mobile home you occupy to $100,000; sale proceeds exempt 18 months after sale or until new home purchased, whichever occurs first (husband and wife may not double)


33-1101

Must record homestead declaration before attempted sale of home
33-1102

PERSONAL PROPERTY

husband and wife may double all personal property exemptions
2 beds and living room chair per person; 1 dresser, table, lamp, bedding per bed; kitchen table; dining room table and 4 chairs (1 more per person); living room carpet or rug; couch; 3 lamps; 3 coffee or end tables; pictures, paintings, drawings created by debtor; family portraits; refrigerator; stove; TV, radio or stereo; alarm clock; washer; dryer; vacuum cleaner to $4,000 total
33-1123

Bank deposit to $150 in one account
33-1126(A)(8)

Bible; bicycle; sewing machine; typewriter; burial plot; rifle, pistol or shotgun to $500 total
33-1125

Books to $250; clothing to $500; wedding and engagement rings to $1,000; watch to $100; pets, horses, milk cows and poultry to $500; musical instrument to $250; prostheses, including wheelchair


33-1125

Food and fuel to last 6 months
33-1124

Motor vehicle to $1,500 ($4,000, if disabled)
33-1125(8)

Prepaid rent or security deposit to $1,000 or 1-1/2 times your rent, whichever is less, in lieu of homestead
33-1126(D)

Proceeds for sold or damaged exempt property
33-1126 (A)(5), (7)

INSURANCE
Fraternal benefit society benefits
20-881

Group life insurance policy or proceeds
20-1132

Health, accident or disability benefits
33-1126(A)(3)

Life insurance cash value to $1,000 per dependent ($25,000 total) (husband and wife may double)
33-1126 \(A)(3)

Life insurance cash value to $2,000 per dependent ($10,000 total)
20-1131(D)

Life insurance proceeds to $20,000 if beneficiary is spouse or child (husband and wife may double)
33-1126(A)(1)

MISC.
Minor child’s earnings, unless debt is for child
33-1126(A)(2)

Property of business partnership
29-225

PENSIONS

see also wages
Board of regents members
15-1628(I)

ERISA-qualified benefits deposited more than 120 days before filing bankruptcy
33-1126(B)

IRAs
In re Herrscher, 121 B.R. 29 (D. Ariz. 1990)

Firefighters
9-968

Police officers
9-931

Public safety personnel
38-850(C)

Rangers
41-955

State employees
38-762

PUBLIC BENEFITS Unemployment compensation 23-783
Welfare benefits 46-208
Workers’ compensation 23-1068
TOOLS OF TRADE Arms, uniforms and accouterments you are required to keep 33-1130(3)
Farm machinery, utensils, seed, instrument of husbandry, feed, grain and animals to $2,500 total (husband and wife may double) 33-1130(2)
Teaching aids of teacher 33-1127
Tools, equipment, instruments and books (except vehicle driven to work) to $2,500 33-1130(1)
WAGES Minimum 75% of earned but unpaid wages, pension payments; bankruptcy judge may authorize more for low-income debtors 33-1131

[keepmine]

Thanks for the replies.

I am in AZ. Can't I just Warranty Deed it back into their name?

That's a preferential transfer to an insider. If you do it within 2 years of filing, the trustee will reverse the transaction.

[TryinHard]

Yikes! Don't want that. That land is ALL my parents have!

Thanks for all the info. I guess the only way to really know is to contact an attorney.

Life can be so unpredictable!

Thanks again