QUESTION
How does filing bankruptcy affect the assets you have?
Asked on Jun 17th, 2015 on Bankruptcy - Michigan
More details to this question:
I am just under $15,000 in debt and I know for a fact based on my yearly income I am in need to file for bankruptcy. My family owns property and it was gifted to me but they still pay taxes because they lease the land from me, can my properties be in jeopardy because of my debt?
10 ANSWERS
Maybe. Meet with a lawyer face to face. Now is not the time to skimp. You do not want to be "penny wise and pound foolish". For example, I charge $150 for a one hour meeting (cash only). I have successfully filed THOUSANDS of bankruptcies, so I know I can answer your questions, and give you some guidance. Any experienced bankruptcy lawyer with a few thousand cases under his or her belt can help you.
Answered on Jun 18th, 2015 at 9:41 PM
Deborah F. Bowinski
All your assets must be disclosed, and the laws of your state or the federal bankruptcy laws will determine what you are permitted to keep and protect from your creditors. If the property you own is not where you live it could well be at risk. With what is at stake, it would be well worth the money to retain an experienced bankruptcy lawyer to advise you.
Answered on Jun 18th, 2015 at 2:46 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Yes. When you file, the property becomes property of the estate. There is a good likelihood that you may use it. This will depend upon state law, whether you can homestead the property and a variety of other issues. Analysis of those issues requires competent bankruptcy counsel.
Answered on Jun 18th, 2015 at 12:50 PM
State laws called exemptions provide protection for property you own when you file bankruptcy. But not all property is protected in every instances and sometimes, even if the law does provide protection, you may not be eligible for the protection or may have to jump through some hoops to get the protection. What the laws say in black and white may not be how the laws are interpreted in bankruptcy court. It can seem like a game of GOTCHA if you don't know your way around. Do you want to take advice of an experienced attorney or learn the hard way?
Answered on Jun 18th, 2015 at 11:33 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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The question cannot be answered without more information such as the values of the homes, amounts of any mortgages, your age, marital status, etc. The question is more complicated than can be answered by emails. Set up an initial free consultation.
Answered on Jun 18th, 2015 at 9:12 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Since you're the owner, the trustee could sell the property to pay off your debt. Apparently, your family saved the legal fee of having a trust drawn up in exchange for losing this properties to your creditors. Think of it as the tuition for the school of hard knocks.
Answered on Jun 18th, 2015 at 5:34 AM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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Yes. Probably the first thing creditors look for when trying to decide whether to prosecute collection from a debtor is whether that debtor owns real estate, whether it was gifted to that debtor or however it was acquired. They then can file a lawsuit to get a judgment and record it against the real property, which can then be sold at a Sheriff's sale. It is important that you consult an expert bankruptcy attorney as soon as possible, even if you wait to file for bankruptcy relief until it is the most advantageous time for you to file, which should be the advice of a conscientious attorney.
Answered on Jun 18th, 2015 at 1:27 AM
Your property could very well be in jeopardy, especially if you are not able to claim the homestead exemption for it. The bankruptcy trustee could also lay claim to the lease payments you are receiving. If you can't handle your debts, you should consult with an attorney who can help you explore all your options for solving your debt problems. You might try to negotiate a settlement of those debts rather than filing for bankruptcy.
Answered on Jun 17th, 2015 at 7:56 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Possibly. It will depend on the values of the property and the list of exemptions you choose if you have such a choice.
Answered on Jun 17th, 2015 at 7:54 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Absolutely! Speak with an attorney before you act! It could be a Hugh mistake to take the wrong path.
Answered on Jun 17th, 2015 at 7:53 PM