Syracuse Business Daily - Can a home owner give ownership of there house to someone else and then declare bankruptcy?

Can a home owner give ownership of there house to someone else and then declare bankruptcy?

Can a home owner give ownership of there house to someone else and then declare bankruptcy on $100k due to mounting medical bills without losing the house? If so how soon after changing ownership can this be done?

Public Comments

The courts are on to this scam. The court will look back 3-5 years to determine when the debt started. Giving away assets is considered fraud and will cause the court to not grant the bankruptcy.
If the people owed money can show the transaction was not an "arms length" transaction, they can still take the house. This is shown by the debtor still living in the house, no change in bills, etc. The creditor can request in court the tax filings for the debtor to see if income taxes were paid on the sale, etc. Doing what you are proposing is very hard to get away with. A good financial investigator would uncover the fraud, and then you would face criminal charges.
Sure you can, it's called FRAUD. If they find this out, you'll be rejected.
On the section of the bankruptcy petition called "Statement of Financal Affairs" you must list off: #10. All property sold or transfered within the past 2 years. #7. All gifts made to individuals > $200 within the past 1 year. Or as Ricky use to say "Lucy! You've got some esplainin' to do Go meet with an attorney and find out the practical application of your state's Homeowner's exemption rules. You'll find that either: 1. The equity your so worried about is exempt (you get to keep). 2. Unexempt, but hardly enough to attempt to liquidate (after realtors, closing costs, etc). 3. You're limited to Ch13 repayment to protect your asset.