More details to this question:
I sold a home with my sister. Found out she is in bankruptcy 13 and is trying to hide proceeds of sale from bankruptcy court. Further, she has a high position at the bankruptcy court. I have urged her to disclose this, but she refuses. I do not want to be part of fraudulent transaction? Is there anything I can do to exonerate myself of this illegal real estate transaction?
5 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Fraud is a crime which requires intent, so if you reasonably didn't know she was in chapter 13, then your part of the transaction isn't fraudulent. By reasonably didn't know, it means you had no actual knowledge and a reasonable person, in your position, would not see any indications to suspect she's in bankruptcy. Generally, speaking you don't have the right to terminate a contract, even if the other party might be committing fraud on third parties (including the bankruptcy court). The bankruptcy court (or other third parties) can void the transaction. This means that any money you got could be clawed away from you, but you won't necessarily get the property back.
Answered on Jun 16th, 2015 at 10:14 AM
"Fraud" is a legal conclusion. Do not jump to any conclusions. Meet with an experienced bankruptcy lawyer to ask your questions. The lawyer will probably charge you for two hours of his or her time. That lawyer will want to review your sister's BK filing, which he or she can do from their office using Pacer. Good luck!
Answered on Jun 15th, 2015 at 4:10 PM
It is never a good idea to describe problems that might be criminal in an online public forum. Get representation from an experienced bankruptcy litigator.
Answered on Jun 15th, 2015 at 3:55 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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It is at least possible that the transaction was not illegal, or not enough so to merit prosecution. For example, if she sold the real estate and her share of the proceeds was completely exempted in her BR case, and more than 30 days have passed since her Meeting of Creditors, it is unlikely that anyone, including the US Trustee or the FBI, would question the transaction. This is particularly so if she is in Chapter 13, and her rent or mortgage payments in her new lodgings are about the same amount as she paid on the mortgage. If she is paying much less, then she should file a Modified Schedule J. You may want to get a complete copy of her BR papers and bring them to a lawyer experienced in bankruptcy, who can analyse the transaction in light of all the relevant facts. Good Luck.
Answered on Jun 15th, 2015 at 3:11 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes be honest and turn your information over to the proper authorities perhaps the UST or the individual trustee.
Answered on Jun 15th, 2015 at 1:59 PM