Skip to main content

Quitclaim sale of property before bankruptcy

I know I'm going to file bankruptcy soon, like within the next couple of months. There's no way I can clean up this mess without the bankruptcy. So my question is whether I can sell my house to my brother using a quitclaim deed before I file bankruptcy? I have a little bit of equity in the home. Any thoughts on that?

STOP! Do not do it. This is

STOP! Do not do it. This is most likely a very bad idea and totally unnecessary. Hire a lawyer get some sound legal advice before you do this. Without knowing a lot more I cannot tell you for sure, so again call a lawyer, pay him/her a retainer, and figure this out. Good luck.
 
Attorney Robert Kovacs

Fraudulent transfer in bankruptcy

Yes, I agree with Attorney Kovacs.  If you know you are going to file bankruptcy and you dispose of assets, those transfers may be considered fraudulent transfers. In other words, the bankruptcy court may eventually find that you made the transfer to hinder or defraud your creditors.  You should discuss your financial situation with a bankruptcy attorney. He or she can explain what steps you can legally take prior to filing your petition and also discuss which form of bankruptcy is best for your situation.  As Attorney Kovacs suggests, what you are contemplating may be totally unnecessary, and you do not necessarily have to lose your house when you file bankruptcy.  You can read this post for more information about fraudulent transfers.  Good luck.

Talk to a Lawyer Today
Find a Bankruptcy Attorney in your County
Most offer FREE Consultations