Full question:
My sister owns a real estate property, if she execute a deed adding me to the title can I include it when i file chapter 13 bankruptcy? thanks
- Category: Bankruptcy
- Date:
- State: California
Answer:
When you file for Chapter 13 bankruptcy, you must list any assets in which you have an ownership interest. Bankruptcy law aims to help debtors resolve their debts and make a fresh start, allowing them to keep their assets during the repayment plan.
In Chapter 13, you submit a bankruptcy petition along with a proposed payment plan to the U.S. Bankruptcy Court. The plan must provide payments equal to what would be distributed in a Chapter 7 liquidation. A key feature of Chapter 13 is that you can retain all your assets while the plan is active and after completion.
However, transferring assets just before filing for bankruptcy can raise concerns about fraudulent conveyance. According to the Uniform Fraudulent Transfer Act, a transfer may be deemed fraudulent if:
- It was made with the intent to hinder, delay, or defraud creditors.
- It was made without receiving a reasonably equivalent value in return, especially if you were about to incur debts beyond your ability to pay.
Therefore, adding your name to your sister's property title may complicate your bankruptcy case and could be scrutinized.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.