Legal Question in Real Estate Law in California

How soon after filing Quit Claim deed can I do Ch7 to satisfy preference period

I had my name added to a grant deed after my brother originally bought the house solely in his name. I am not on the home loan at all. I agreed to help with half of the pymt if he would add me on title a few years ago. I now no longer want any interest in the home, and I may be filing Ch 7. I was thinking of recording a quit claim deed to remove my name. I don't want him to be affected by the BK and since he has been paying all of the pymts for a while now I want him to keep all interest. The property is worth what the loans encumbering it are. It may even be upside down as far as worth but he wants to keep it.


Asked on 5/29/09, 4:02 pm

1 Answer from Attorneys
David Gibbs The Gibbs Law Firm, APC

Re: How soon after filing Quit Claim deed can I do Ch7 to satisfy preference period

You may not like to hear this, however, if you file bankruptcy the Trustee is going to take the position that your brother is an "insider", thereby increasing the preference period from 90 days to two years. I would suggest that you speak with a bankruptcy attorney before doing anything - this is an issue that if not dealt with properly, and properly analyzed before you file, could cause significant problems for your brother in your bankruptcy.

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Answered on 5/29/09, 6:32 pm


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