Legal Question in Bankruptcy in New York

Re: bankruptcy

Your daughter's ownership interest in the vacation club must be disclosed in her bankruptcy filing. Whether her interest would be sold by a bankruptcy trustee depends on the value of her interest and whether she is the sole owner or is co-owner with you and your wife. What matters is the equity in the vacation club, i.e. its value minus the balance of any loans used to purchase it. If your daughter lives in New York State, there is no exemption for assets of this type.

Please contact my office directly if you would like to discuss your situation further. You may also visit my website at amdlaw.com for more information.

Re: bankruptcy

Unfortunately for you, when you put the timeshares in your daughter's name, you, in essence, made a gift of them to her. This works two ways. If your creditors sued you, they could not put a lien on these assets. However, if your daughter is in a legal proceeding, the properties are treated as if they are hers. She must disclose them in any bankruptcy proceeding.

On a positive note, trustees will frequently "abandon" time shares because they have such little resale value.

Accordingly, there is an excellent chance that the trustee will not pursue these assets and your daughter will wind up being able to keep them.

For more information about bankruptcy law, practice and procedure, please see my bankruptcy blog:

www.LongIslandBankruptcyBlog.com

and my bankruptcy website:

www.BankruptcyCanHelp.com

Good luck to both of you!