Legal Question in Bankruptcy in Ohio

My husband and I are planning on filing for bankruptcy due to large credit card balances and medical bills. The house we live in is in my husband's name. We are currently behind on the payments. My husband also owns land that is paid off. Will we be able to keep the land and if not, would we be able to transfer it to someone in the family before filing bankruptcy? If that is possible, how long before we file would we have to transfer the land?


Asked on 1/14/10, 10:28 am

1 Answer from Attorneys

David Michael Benson Benson Law Firm

Generally speaking, you can file Chapter 13 to retain nonexempt assets.

As far as transferring the land to a family member, section 727 of the Bankruptcy Code prevents a Chapter 7 debtor from receiving a discharge where she has transferred the property with the intent to hinder, delay or defraud a creditor within the year before filing. Section 548 allows the trustee to recover assets transferred for less than fair market value in the two years prior to filing.

Finally, section 1325 requires Chapter 13 plans to be filed in �good faith� and that plans pay creditors at least what they would have received in Chapter 7. As you can see, trying to evade the reach of the trustee leading up to bankruptcy can be a minefield.

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Answered on 1/22/10, 11:58 am


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