Protecting Assets From the Reach of the Trustee and Creditors
Potential problems can arise if you jointly own an asset with another person and you wish to file bankruptcy. The bankruptcy trustee may consider any jointly held asset to be an asset of the bankruptcy estate. If you are considering filing bankruptcy, you should speak with an experienced attorney before you take any action.
At Prescott & Pearson, P.A., we have represented thousands of people in bankruptcy proceedings, many of whom have owned assets jointly with relatives. Our experience and comprehensive knowledge of the bankruptcy laws enables us to deal with the often thorny issues arising from jointly held assets.
In a free consultation, a lawyer can review your situation and discuss your options. Contact Prescott & Pearson, P.A., today to schedule your consultation.
Jointly Held Assets
There are simple actions you can take prior to filing bankruptcy that can help you avoid potential problems with jointly held assets. Get legal help today.
Many parents set up a savings account or buy a CD, placing a child's name on the account as joint owner. If the adult child files Chapter 7 bankruptcy, the bankruptcy trustee may attempt to come after those funds. There are limits as to what actions you can take to remove your name from title to property prior to a bankruptcy, and significant problems can be created by taking such actions without consulting an attorney first.
A Chapter 13 bankruptcy can also allow you to keep jointly held assets. Prescott & Pearson, P.A., can provide you with guidance regarding issues such as these and others that may arise.
Let's say your parent places his or her home in a life estate, making you what is known as the remainderman. As the remainderman, you will receive ownership of the house upon your parent's death. Generally speaking, the life estate will remain exempt in bankruptcy, though if the parent dies within six months of your filing bankruptcy, the trustee could try and take your beneficial interest.
As with other bankruptcy matters, advance planning can help you avoid potential problems. Let Prescott & Pearson, P.A., show you how.
Call For a Free Consultation Today
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For a free consultation with a Minneapolis family property attorney, contact Prescott & Pearson, P.A.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.