The house in pa. is about to be foreclosed on soon. I have been told they can go after my intyrests in the house in NY, is that true
If you take your name off the house in NY you could very well lose your bankruptcy discharge. You could also cause trouble for the people whose names remain on the deed because the bankruptcy trustee could then go after those people. If you were to remove your name from the deed you would be treated as having transferred your interest to the people who remain on the deed. Because the interest you transferred is valuable, and you would have given it away for no consideration, the transfer would be considered a "fraudulent transfer" and not only would it make you look bad in the eyes of the bankruptcy court, it would allow the bankruptcy trustee to sue the people whose names are still on the deed to recover the monetary value of the interest you gave up; if those people don't have a lot of money, they could be in a lot of trouble as well.
Please don't do it. Instead, consult with a competent local bankruptcy attorney to review all of your alternative courses of action.
My answer does not constitute legal advice and may not be relied upon by anyone for any purpose and does not constitute an attorney/client relationship or an offer to form such a relationship. This disclaimer is intended to be fully compliant with the requirements of Treasury Department Circular 230 and the terms thereof are fully incorporated by reference. If you wish to consult with me please contact me at dana@nytaxcounsel or visit my website at www.nytaxcounsel.com
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