How do I protect a property when filing bankruptcy
Asked on Mar 13th, 2012 on Bankruptcy - Massachusetts
More details to this question:
I have a small property with no mortgage, my primary residence has a huge one. 2 different states. If I divorce my wife and she takes the small property as a settlement, would it then be protected if I were to file for bankruptcy and let the primary residence go to foreclosure?
No. Transferring property to your wife will not protect it. In fact, unless you receive "reasonably equivalent value" for the property transferred, your creditors (or the Trustee in a bankruptcy case) could sue her to recover the value transferred, particularly if done within 2 years prior to filing your case.
It's impossible to advise you as to how to protect the property without knowing its value, the value of your other assets, and the exemptions available to you under applicable law.
Exemptions are "protections" for value you have in certain assets such that they are "exempt" from collections. Every state has different exemptions amounts available. Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period.
You should consult with a bankruptcy and/or asset protection attorney in your area for more details.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
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