Legal Question in Bankruptcy in New York

Bankruptcy and mortgages

My 87 mother-in- law, my husband and I are on the title to our home. My MIL is filing for bankruptcy and may be eligible to file for Chapter 7. I have 2 questions: we would like for her to take her name off the house but I don't know if this can be doen after she files and second if we decide to refinance for a better mortgage rate after her filing, will this have any effect on her filing? I am aware that for a chapter 13 her amount owed will have to be paid but what about a 7


Asked on 12/08/08, 2:12 pm

1 Answer from Attorneys
Craig Robins Law Offices of Craig D. Robins (www.BankruptcyCanHelp.com)

Re: Bankruptcy and mortgages

Your mother-in-law should not feel alone. The one demographic group that increased the most, as far as bankruptcy filings, is senior citizens. That is why I have a special note on my web site about senior citizens with debt problems. Here is the link to that note which you can copy and paste to your browser:

http://www.bankruptcycanhelp.com/elderly-bankruptcy-debt.php

As far as removing your mother-in-law's name from the house, this should not be done prior to filing !!!!!!!! VERY IMPORTANT !!!!! If she transfers an interest in real estate to you before filing then it can be considered a fraudulent transfer which can be set aside in a bankruptcy proceeding for the benefit of the creditors.

However, if she keeps the house at the time of filing she can exempt and protect her share of the equity up to $50,000.

Is sounds like you have some serious issues that would best be reviewed by an experienced bankruptcy attorney.

If you live on Long Island, we have four offices including our main office in Woodbury. Please check out our web site: www.BankruptcyCanHelp.com

Please consider giving us a call.

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Answered on 12/08/08, 3:55 pm


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