Legal Question in Credit and Debt Law in Texas

Re: proerty sale; debt avoicance

I have been licensed in TX since 1986. I reside in NC now, but I can assist in this area.

Homestead property in TX is generally free from creditor claims. I can see no reason why you would want to convey it to another party. You need to let me know if it is "in town" property or rural and how large it is.

Please provide more specific details regarding the amount of liens on the homestead, confirm your residence in the homestead - what is its value? What type of creditors are you concerned about (credit cards or other unsecured accounts, or another type)? Have these creditors sued you yet? Have they obtained judgments yet?

I see no reason for you to convey a homestead to anyone else if it is truly a homestead. Conveying property to another with the specific design or intent to avoid creditors is usually not a workable option depending on how far along in the collection process the creditor is, and is normally avoidable by the creditor.

If you are talking about filing for bankruptcy, you need to post this in the bankruptcy subject area because there are limitations on the homestead exemption in a bankruptcy proceeding.

Re: proerty sale; debt avoicance

That would be a violation of the Uniform Fraudulent Transfers Act and, if identified as such, could leave the 'purchaser' open to liabilities of the 'seller' up to the value of the transferred property. If the 'purchaser' re-sells the property they will be on the hook for capital gains as well as the underlying debt, attorney fees, and possible punitive damages.