QUESTION
my uncle is filing bankruptsy and is a 1/3rd owner of the house. can he quitclaim his interest to the other 2/3rds owners and prevent sale of property
Asked on Apr 17th, 2012 on Bankruptcy - Indiana
More details to this question:
the home is in Indiana and the home was willed to my aunt my uncle and my mother per my grandmothers wishes. my uncle has ran into harsh times and needs to file bankruptsy. can he quitclaim his portion of ownership to my aunt and my mother and thus not make us sell the home and render me and my family homeless.
1 ANSWER
Bankruptcy Attorney serving Burbank, CA
Partner at
Law Office of Mark J. Markus
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While it depends on the value of your uncle's interest in the property, which you have not disclosed, as well as which chapter he files under, the quitclaim transfer you allude to would likely be considered a fraudulent transfer under both federal and state law, and the Trustee in a bankruptcy case could sue the transferees (those that receive his interest) for the value of the transfer. It could also leave your uncle facing a Complaint to Deny his bankruptcy discharge as a result.
Bad idea. I don't recommend it.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
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Answered on Apr 17th, 2012 at 8:20 PM