Legal Question in Bankruptcy in California

Should I remove my Dad's name on the deed before he goes bankrupted next month?

Hi,

2 years ago when I purchased my house, we (mywife and myself) put my Dad's name as a co-signer. So there are 3 names on the title (myself, my wife, and my DAD). Now my Dad has a financial trouble and he wants to declare bankruptcy. Should I take his name off the title before he files for a bankruptcy next month? Please note I am the only one who has paid the mortgage for the last 2 years.

Also, due to the decline in mortgage rate, I want to refinance my house and will drop his name off the tittle. Is it OK?

What should I do?

Thank you in advance.


Asked on 10/09/01, 5:31 pm

1 Answer from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Should I remove my Dad's name on the deed before he goes bankrupted next mon

If you "take his name off" that will likely be considered a fraudulent transfer and the Trustee in your father's bankruptcy case can sue to recover the value transferred to you. Unless you can convincingly prove that his name was only on title as an equitable owner and he never contributed anything to the property and his ownership interest was never intended.

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Answered on 11/21/01, 4:46 pm


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