Legal Question in Bankruptcy in Alabama

Quitclaim deed and bankruptcy

My mother and aunt own a house that was left to them by their aunt about 12 years ago. The house is in both of their names. My mother is considering filing for chapter 7. Someone told her that if she did a quitclaim deed to her sister that the house should be safe in chapter 7. My mother has been living in the house for the last 10 years without paying any rent and it was understood that my aunt would receive the house when she passed. I don't want my aunt to lose the house since they had this agreement.


Asked on 11/15/05, 9:45 am

1 Answer from Attorneys
Sterling DeRamus Sterling L. DeRamus, Attorney at Law

Re: Quitclaim deed and bankruptcy

All I can say is that if you are going to listen to non-lawyers pontificate about a complicated subject like the interplay of real estate and bankruptcy, you will get what you pay for: nothing. Do not under any circumstances quit claim the house and then file bankruptcy. Such a fraudulent transfer can get you in seriously hot water. If your mother files Chapter 7 she will most likely lose her 1/2 interest in the house. She should consider Chapter 13, and find a darn fine bankruptcy lawyer, not some yahoo who pumps out 400 of these a month.

Read more
Answered on 11/15/05, 10:36 am


Related Questions & Answers

More Bankruptcy Law questions and answers in Alabama