I own a condo outright and I have to file for bankruptcy from my previous marriage (not because I want but because it is court ordered) I want to know if I sell it and spend the money prior to filing for bankruptcy, will I have to pay the money back? I purchased this after my divorce.
2007-06-04 11:26:41 · 4 answers · asked by Gwen 1 in Business & Finance ➔ Personal Finance
Are you living in the condo? If you are living in the condo and have a homestead law in your state, you may be able to protect it using the homestead law. Otherwise, either the property or the proceeds from selling it are an asset that will need to be disclosed. To do otherwise would be bankruptcy fraud.
The federal look-back period is 2 years, so if you are being oredered to file for bankruptcy, it is likely that you cannot wait that long. Some states may have look-back periods that are longer.
Check with your attorney.
2007-06-04 12:00:02 · answer #1 · answered by aj485 5 · 1⤊ 0⤋
To rephrase your question: "Can I deliberately hide assets then declare bankruptcy?" Do you really think that is legal? What kind of debts do you have? If you own the condo outright, why can't you sell it and use the proceeds to pay off the debts? The divorce court DID NOT order you to file bankruptcy, they just ordered you to pay the debts. For that matter, the bankruptcy court did not order you to file, if they ordered anything, a bankruptcy has already been filed.
2007-06-04 20:32:34 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
It depends on the timing of the sale. There is a question on the BK form that asks if you have disposed of any assets within the last two years.
If you sell it now and wait two years before you file you are probably OK. If you sell it now and file next week then you are in trouble.
They do check for things like this and will arrest you for BK fraud if they find you have lied or hidden assets.
You need to check with a local BK attorney. Different states have different allowances for home equity. You may be able to keep some, most, or all of any equity you have in your primary residence. One website I refer to often is creditboards dot com. Check out the BK forum and you'll find lots of useful info. Also, its free.
Good Luck
2007-06-04 18:34:50 · answer #3 · answered by GUS 4 · 0⤊ 0⤋
Dear friend
I think you should update yourself with the proper and exact information for your issue. I would recommend you to go through the following website to get the correct and brief information. Thanks
http://www.usalegalcare.com/Bankruptcy.htm
Good luck
2007-06-05 02:32:05 · answer #4 · answered by Anonymous · 0⤊ 0⤋