Legal Question in Real Estate Law in California

Since your brother can not or will not pay his bills, there is no advantage to you to have him as a co-signer, although it does not hurt you. I am assuming what you mean is that you took out the mortgage as the sole owner of the property and he merely co-signed the note as added security to the lender, but he has no partial title to the property. If he has no ownership interest in the property, what is there to quit claim? If he is in fact a owner with you, then it would be best for you to have him give you a gift of his interest in the unit and that could be done via a quit claim deed.

Even though you listed this debt as a debt when you filed for BK, unless it is a reorganization bankruptcy [I believe that is what you filed], secured debts are not removed by BK.

Shers gave you some probably useful information, but because your question is unclear, I can't say if what he told you is correct or not. It sounds to me like you and your brother both own the property. If that is correct, then Shers information is wrong. You should repost your question with a clearer description of the situation, or email me with it, if you want a reliable answer.

Please note that transferring property for less than it is worth can be a fraudulent transfer if the purpose or effect is to "hinder, delay or defraud" a present or potential creditor of the transferor. You can find the details in Civil Code sections 3439 through 3439.12 or look for discussions of the Uniform Fraudulent Transfer Act on line. It is fairly common for parents or siblings with financial problems to get the idea to protect property from bill collectors by giving it to a child or sibling. It is also fairly common for creditors to discover what's gone on from public records or otherwise, and to take both transferor and transferee to court to have a judge reverse the transaction and award additional damages.

Mr. Whipple is right. What he refers to is what is known are known as fraudulent transfers to avoid creditors.