Legal Question in Bankruptcy in Maryland

Re: pre-bankruptcy transfer to family member?

Transfers between family members before bankruptcy are very risky. Any transfer of property made prior to filing bankruptcy can be attacked by the bankruptcy trustee. The repayment within a year before bankruptcy of an unsecured debt owed a brother can result in the brother getting sued by the trustee to pay the money back. If the brother's name is placed on a deed with the debtor prior to bankruptcy, the transaction can be undone as a fraudulent conveyance. Under some circumstances transferring property to a family member can prevent a person from getting a bankruptcy discharge at all.

Legitimate transactions between family members can and do take place. It is important to employ a competent attorney to advise which transactions are at risk for being undone in bankruptcy, and to structure legitimate transactions to minimize the risk of attack by a bankruptcy trustee.

Re: Exemption of Home?

Your paid-for home is not able to be claimed as exempt under MD law applicable to bankruptcy filings (unless it is worth less than about $10,000 or so), but you may be able to keep it in a Chapter 13. There are other ways you may be able to solve your debt problems without losing the home, as well. Transfering the home to a familiy member is not one of them unless you are able to wait several years before filing. See an experienced bankruptcy lawyer to discuss your situation in detail.