Question What is a safe time to Quit Deed my paid home?

[wayout]

Hi, I'm new hear trolling along...I like to or have to Quit deed my home in CT. It's paid off but my CC debt almost equals the est. value of my home.

I'm not interested in liquidating just to satisfy my creditors, plus there are capitals gains taxes to deal with too...

Does anyone hear know what a good time to wait after the Quit deed is finalized to file bankruptcy 'IN CT'?

From the net I gather two years is safe and two years after cause I've read the trustees watch to see if you deed it back in your name. Thanks

[SMinGA2]

What is your home worth, and do you own it individually or jointly with someone else? A quick Google search shows CT has a $75,000 homestead exemption.

[wayout]

It's worth more than that like 150,000.

[wayout]

I alone own it.

[AngelinaCatHub]

Welcome to the Forum. Who are you quit claiming the Deed to? A quit claim Deed cannot just be hoisted upon someone or if you plan to bk, it may be considered fraud to attempt to Deed it and in two years or so get it back. The Trustee or the Court has no time limit once they find out some fraud has occured. Be very careful.

Now this question in that you stated your house is worth what equals in your CCs. But then you plan to bk? What are you going to do, sell the house and pay your debts off or bk. You don't want to do both. That would be foolish to pay off debt and bk on it. If in fact you have a house exemption as stated, why not keep the house, bk, then be free of the debt and start a new life.

Could you clarify this please? 'Hub


EDIT: Perhaps a C13 would be better for you?

[wayout]

#One senario, 150,000 -75,000 Homestead = 75,000 = creditors sue for the remaining equity.
Forces the sale of home to collect on the remaining 75,000 or

# two senario, Quit Deed it to someone I trust before all this poop happens...= no asset to liquidate for the creditors

# three senario, sell everything, cash out and hide the cash...they can't take what I don't show.
I don't like this one either. To much work.

[wayout]

Oh and thanks for the welcome. From what I've gathered through searching, this is something that is not discussed much.
That's how I know it's a secret. The world wants to hide assets in fear of lawsuits. It's complex.

There has to be a written time line that the courts have to abide by or any sales/assets with your name on it in the past 20 years can be brought up as an excuse to take what ever the creditors want.

[SMinGA2]

The problem with scenario #1 is it likely won't end up the way you want it to. If the trustee suspects fraudulent transfer (and giving your house to someone else in this manner would be reason to suspect fraud) then he/she can dig back pretty far. That's my understanding at least. Meaning there would be no 'safe' time.

Do you have disposable monthly income? With owning your home free & clear, my guess is yes? If so - filing ch. 7 won't likely work for you anyhow.

[HHM]

There is NO good scenario for this, the look back for real estate transfers is 10 years.

Sorry, this is a non-starter.

[wayout]

Thanks but I beg to differ. Your saying 6 years ago I Quit deeded a half acre of land. Then I file Ch 7 ? What?

[keepsmiling]

150K seems low for home value in CT. How did you get your number?
Can you buy something in your area for 75K? that is what you would get from the tt (wish we had such nice numbers in NJ) in a 7.
Do you have other income?

Actually scenario 1 is not correct. They could put a lien on your house and take it when it sells. They can't force you to sell. They can, however, garnish wages, bank accounts etc.

[keepmine]

You need to look a the applicable section of the bk code.

http://doney.net/bkcode/11usc0548.htm

(1) In addition to any transfer that the trustee may otherwise avoid, the trustee may avoid any transfer of an interest of the debtor in property that was made on or within 10 years before the date of the filing of the petition, if--

(A) such transfer was made to a self-settled trust or similar device;

(B) such transfer was by the debtor;

(C) the debtor is a beneficiary of such trust or similar device; and

(D) the debtor made such transfer with actual intent to hinder, delay, or defraud any entity to which the debtor was or became, on or after the date that such transfer was made, indebted.

Then, look at CT's Fraudulent Transfer Act. I'd strongly urge you not to involve others in this scheme.

http://law.justia.com/codes/connecticut/2011/title52/chap923a/

[wayout]

150K seems low for home value in CT. How did you get your number?
Can you buy something in your area for 75K? that is what you would get from the tt (wish we had such nice numbers in NJ) in a 7.
Do you have other income?

Actually scenario 1 is not correct. They could put a lien on your house and take it when it sells. They can't force you to sell. They can, however, garnish wages, bank accounts etc.

Yes they can (in BK) take what ever you got that has value and sell it after exemptions. I checked over and over.....

Keepmine, seems you may be right. I just have to go to a lawyer to see. I'm just embarrassed to ask them
'how to hide my assets' to stiff the creditors! Sad

[df04527]

Well your not going to find a way to do it here. You will find though warnings such as already has been described of you flirting with disaster. Hiding assets is not what this site is about.

[HHM]

Here is "how" you do it, but you probably can't afford it or qualify.

Set up an offshore trust in the Cook Islands (that costs about $30K).
Then, have a bank in Nevis (Carribbean) take out a mortgage against your house, interest only payment (doubt you meet the minimums, I think the loan needs to be more than $750,000)
The proceeds of the loan are transferred to a Certificate to Deposit in the Cook Islands that is owned by your Offshort Trust, that pays 1% more in interest than the mortgage note. The interest on the CD pays the interest only payment in Nevis.
That is how you protect your house against creditors Reason being, US courts have no jurisdiction or treaty with those countries.

Short of that, there really is no option here. All you can do is take out a mortgage against the house, and then either spend down the cash or exempt at least some of it in retirement.

I hate to say it, but you are really between a rock and a hard place.

Best option is sell and settle.