I am actually asking this for my parents.. Here is the dilemma , They want to claim BK (chap 7) to wipe out the deb they have.. since neither are working now. Problem is a few years back.. maybe 7 my grandmother turned over her house to them, its owned free and clear. currently my sister and my grandmother live there. I am concerned what the BK court will do with the house if they file... What is the best way to protect this. My thought was turn it over to an LLC with all 3 parties as owners. BUT not quite sure if there is a seasoning time where the BK Court wont be suspicious.. and it wont be protected..
Any ideas? Thanks all in advance..
Maybe a Trust?
If your parents own that paid off house likely creditors they owe have already placed liens on that property as an asset.
Your parents would need to schedule an appointment with a BK attorney. The consultations are usually free of charge and they answer your questions. Sometimes you will not talk to the BK attorney but their paralegal etc.
You have to be careful of shifting of assets I believe within 6 months of filing or the trustee for the court will not like it and you could be accused of trying to defraud creditors. So to be safe you might have to plan out the chapter 7 way in advance.
No legal advice.
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