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If I transfer my principal residence into a trust will it be protected from bankruptcy trustee if I file for personal bankruptcy
Washington
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Posted about 1 year ago in Bankruptcy / Debt
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bankruptcy law:
I intent to transfer my principal residence to some form of entity and/or trust outside of US - for how long do I have have to wait once I do this to file bankruptcy for this to be an effective form of protection of this property from creditors/bankruptcy court so I won't lose my house?
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Answers (2)Gregory J. Jalbert
This attorney is licensed in Washington.
Posted about 1 year ago.
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I would highly recommend against doing this. Consult a bankruptcy attorney to determine if your house is truly in jeopardy. A fraudulent conveyance, which is what this would be considered, can be recovered if an action is filed with 4 years of when the property is transferred or, even later if the transfer could not be reasonably discovered. In that case the claimant has an additional year from when the transfer was or could reasonably have been discovered.
If you transfer your house and it is recovered back you do not get to claim a homestead. Lesley Abigail Hoenig
This attorney is licensed in Illinois and 2 other states.
Posted about 1 year ago.
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Just to add to the first answer, you have to list all property you've put into a self settled trust (one you created) in which you are the beneficiary (which in this case you would be), within 10 years of filing. If you are thinking of filing bankruptcy any time soon, I highly doubt you're going to find that this benefits you. Typically transferring a house out of your name before filing bankruptcy causes more problems than it solves. I agree that you should consult a bankruptcy attorney first as well as a competent estate planning attorney.
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