QUESTION
If I file bankruptcy due to over extended credit, can the condo and money in accounts be affected?
Asked on Oct 28th, 2016 on Bankruptcy - Washington
More details to this question:
Family trust became ours on 2014 upon loss of mother, a fully paid condo and 3 bank accounts in trust.
8 ANSWERS
Maybe, but it depends. I have about 50 questions to ask you before I can render an opinion.
Answered on Nov 29th, 2016 at 5:53 PM
Bankruptcy Attorney serving Alpena, MI
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Carl C. Silver Attorney at Law
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yes
Answered on Nov 29th, 2016 at 5:52 PM
Yeah, answering this question is going to be opening a can of worms. Some situations are just not appropriate for an online assessment, and this is one of them. The devil is in the details, and the details required will be exhaustive.
Answered on Nov 29th, 2016 at 5:52 PM
It sounds like you would have to claim at least partial ownership in the trust assets, so you should not file for bankruptcy without talking to a bankruptcy attorney first. You could jeopardize the trust assets.
Answered on Nov 29th, 2016 at 3:34 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Yes. You really must consult a skilled bankruptcy lawyer who can review ALL the facts and ALL the applicable law relating to exemptions And property of the estate. Filing a BR without a thorough consultation with a knowledgeable lawyer could endanger assets you want or need to protect for yourself and your family.
Answered on Nov 29th, 2016 at 3:34 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Any assets you own can be sold to pay off your creditors in a bankruptcy, unless an asset is covered by an exemption. If you live in the condo, there is a $134,000 exemption for your residence. Whether the accounts in the trust can be taken, depends on the terms of the trust.
Answered on Nov 29th, 2016 at 3:33 AM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Without a careful review of the trust, there is no way to tell.
Answered on Nov 28th, 2016 at 5:39 PM
1 Award
Most likely. The homestead exemption is $50,000, so if the condo is worth more than that (which it probably is) then the court can take it in a chapter 7 bankruptcy. You also need to meet other requirements to claim it as your homestead. You should consult with an attorney about a chapter 13 and when you do so make sure to have the trust documents, bank statement, and a copy of the deed to the home so the attorney can give you complete advice.
Answered on Nov 28th, 2016 at 5:39 PM