Legal Question in Bankruptcy in New Jersey

Re: bankruptcy /propertyownership

You must disclose the transfer on your bankruptcy petition in the Statement of Financial Affairs. You may have a problem with this transfer; i.e., creditors or the Chapter 7 Trustee asserting a fraudulent transfer claim. Under New Jersey law and federal bankruptyc law, a transfer of real estate made with the intent to avoid creditors or made for less than fair market value is subject to attack.

Whether or not you still are the legal owner of record depends upon whether the transferee recorded the quit claim deed. If the deed has not been recorded, then you are still the legal owner. Even if the deed has been recorded, depending upon the facts it is highly probable that a claim of fraudulent transfer will be asserted against you.

Glenn Reiser, Esq.

LoFaro & Reiser, LLP

201-498-0400