Boyfriend and Girlfriend buy a house together.

[SMinGA]

If you had exemptions available to cover it - then exempting as much as possible and perhaps trying to work out a deal w/ the trustee if there was anything remaining - would have been better than trying to get assets out of your name so the BK court could not go after them.

You should contact your attorney, find out if you have exemptions to cover part or all of the value and even if that is possible now after the fact.

[newbie2]

So if I could go back in time I should have placed my 50% interest into the bankruptcy instead of signing a warranty deed transferring my half? I thought by doing this I would, in affect, be deeding my portion to the State, instead of the rightful owner....

Given that I've had the 341 hearing and the trustee announced her intention to look into this further, should I sit on my hands or activate my lawyer to try to reverse the action?

The action can't be reversed. It's done. Now all you can do is wait and see what the trustee wants to resolve it. Hopefully he (or she) will think it is not worth the cost and effort to try and get back the money (equity).

[Flamingo]

Again, your lawyer is looking for fraud. When you transfer title of an asset or part of an asset prior to filling bankruptcy within a certain amount of time (can be up to two years prior), this is what occurs. It doesn't matter who paid what during the time the property was in joint names; it's the value of the asset that matters and the timing of the transfer. It is apparent by your initial posting that you knew you were going to file at the time of transfer and that was easily picked up by the trustee; that is the issue, not that you were trying to be nice to your girlfriend. The legal world is emotionless. Your girlfriend's feelings or payments while you were living there don't matter.

[newbie2]

Again, your lawyer is looking for fraud. When you transfer title of an asset or part of an asset prior to filling bankruptcy within a certain amount of time (can be up to two years prior), this is what occurs. It doesn't matter who paid what during the time the property was in joint names; it's the value of the asset that matters and the timing of the transfer. It is apparent by your initial posting that you knew you were going to file at the time of transfer and that was easily picked up by the trustee; that is the issue, not that you were trying to be nice to your girlfriend. The legal world is emotionless. Your girlfriend's feelings or payments while you were living there don't matter.

Bingo! I don't know why people don't talk to an attorney before they do something like this. Trustees can spot this kind of thing in 2 seconds, and I think it makes them salivate.

[sebaco]

update for anyone following thread.

we just heard from the trustee today and she declared me "asset-less" and will not be pursuing the 50% ownership i transferred days before filing...whew.

Now my ex- wants me to re-affirm the house.

I'm not sure what hurdles i have to clear to do this (i.e. bank has to agree, court have to agree) but i want to get this done too so she can stay at the adjustable interest rate 2.5% vs. refinancing up to 6% (a difference of between $2500 a month and $5550 a month to her).

In the meantime, I'm covering myself by having her sign an irrevocable policy that pays off the house and deeds it to her daughter in the event of her passing.

Comments welcome.

[helpinNE]

I would not advise reaffirming the house, if she would default at some point in the future, the bank will then come after you.
I would consider this very carefully and proceed with caution.

[SunshineGal]

Just my opinion, but I would NOT re-affirm the house. As long as she continues to pay as agreed, she shouldn't have a problem with the lender.

[newbie2]

update for anyone following thread.

we just heard from the trustee today and she declared me "asset-less" and will not be pursuing the 50% ownership i transferred days before filing...whew.

Now my ex- wants me to re-affirm the house.

I'm not sure what hurdles i have to clear to do this (i.e. bank has to agree, court have to agree) but i want to get this done too so she can stay at the adjustable interest rate 2.5% vs. refinancing up to 6% (a difference of between $2500 a month and $5550 a month to her).

In the meantime, I'm covering myself by having her sign an irrevocable policy that pays off the house and deeds it to her daughter in the event of her passing.

Comments welcome.

DON'T reaffirm the house. Unless the lender makes it a condition of her keeping the house there is no reason to reaffirm and every reason not to.