Legal Question in Bankruptcy in Georgia
Two family members have joint ownership (50/50) of a small home here in Georgia. One party is filing bankruptcy in Maryland. The house is a family home and neither wants to lose the home in the event of bankruptcy. Are there any options that would enable them to avoid risk of losing the house (i.e. deeding full ownership to the other owner of the home).
2 Answers from Attorneys
Such a transfer would be fradulent. It could get the bankruptcy debtor's discharge denied, and even land the debtor in prison. Additionally it would get the other party sued and probably guarantee loss of the property. Whether the bankruptcy affects the property depends on its value, any loans against it, what type bankruptcy is filed, and Maryland's exemption laws. It may or may not affect the home depending on those numbers. The fact you asked here indicates that a pro se filing is being attempted. Do NOT do that. Each owner needs to retain separate attorneys to evaluate the consequences. Their interests conflict and they should NOT use the same attorney.
I concur with Glen, above. You cannot transfer any interest in the property at this point as it will only create more problems for debtor's bankruptcy. The trustee's interest in the property will turn on the value of the property. If there is a mortgage on the property which exceeds the value of the property, the trustee won't have any interest in the property. If the property is not encumbered by any mortgage, then the trustee will be interested. However , the trustee is interested in the value of the property, not the specific parcel. You may be able to negotiate with the trustee and pay the trustee the value of the 50% interest in the land less the trustee's costs to sell the property. You would need to disclose the source of the funds, etc. Regardless, you need an attorney to successful navigate you through this type of bankruptcy.
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