Question about assets

[hardtime]

Business is doing poorly and I think the end is near. I've lost most everything trying to stay above water. All I have left is a vacation property with small home (home is not my primary at this time, actually this is in MI. I rent in IL).

I'm thinking about two options:
1) thinking about selling the property to my friend/roommate. This will rid me of mortage payments, taxes, ins, etc. Without these bills, I can take a cut in pay. But I'm thinking this will raise some eyebrows from the powers that be. Definitely dont want to do anything shadey. Do you think the court will view this as an attempt to hide assets?
2) thinking about changing my primary residency to my home in MI. If this home is my primary, will this asset be exempt if/when I have to declare bankruptcy.

Thanks

[AngelinaCatHub]

You may have safety on becoming a Michigan resident. See http://www.bankruptcyinformation.com/mi_exemp.htm

See: http://www.michigan.gov/documents/2856_11014_7.pdf

I don't know Michigan bk laws as I live in FL and in FL and TX bk cannot take your home. Selling your house now sure will get you a Trustee looking very close at you. 'Hub

[hardtime]

Thanks much for the info!

[LadyInTheRed]

You can sell the house as long as you sell it for fair market value and you should be prepared to prove it was fair market value if you sell it to a friend or family member. If you sell, you will then have cash that you will need to exempt or spend on legitimate needs before you file. I took a quick look at IL BK exemptions, and they look pretty stingy. http://www.bankruptcyinformation.com/il_exemp.htm

If you move to MI, you may still have to use IL exemptions. See http://exemptionsexpress.com/How.html to determine what state's exemptions you'd have to use or how long you'd have to live in MI before using it's exemptions (or federal exemptions which are allowed in MI)