filed Chapter 7 in 99, just found out I had a hidden asset

In April of 99, Mom was given 4 months to live, but 3 yrs later shes still alive. My only sibling flew up from FL,we live in MA, brought Mom to her attorney, and put Moms condo(no mortgage), in 1/4 my name and 3/4 hers. She is POA.It was owned outright before by Nana and Mom, and my sister was watching Nanas interest, thats why I got 1/4. Nana moved into an old home and had to hide her assets. Well, In july of 99, my husband and I filed for chapter 7, keeping our house and the cars. I was never told that the condo was put in my name, later on they said it was in trust for if my Mom would die they could avoid probate. Mom lived there for the next 2 yrs. I never paid any taxes or even knew about it. Now, Sis, searched me out on the internet and found out about my bankrupty. Mom has taken a turn for the worse, and the home has been empty for a yr., and it has been out of Moms name for 3 yrs. Well, sister just told me that when they sell the condo, I will get nothing because I never claimed it as an asset!that it would all go to my creditors.I don't care about the $$, I am worried I did something illegal. I never signed anything, and I just found out a few months ago that it was in my name 1/4. So, sis says the creditors will take my share, she will keep the rest.

Should i reopen the case and claim this as an asset, so I don't get in trouble? They have been telling me for yrs that it was still Moms and Nanas and that when they die it would go to the kids. When I called the town hall, and they sent me the deed thats when I found out, a few months ago. I never looked at this property as mine, as Mom was still living, and if they sold it of course it would be Moms and Nanas $$. how can I be held responsible for something I had no knowledge for? Please advise me of what to do, because if they sell the house and do a title search, won't my name pop up as part owner who went bankrupt? Any advice would be greatly appreciated, I want to do the right thing by the law. Thank you star43

I hate to sound like a jerk, but it sounds like sis is going to give herself a bonus. Don't believe for a second that your old creditors are keeping an eye on your every move. It's either dishonesty, greed or paranoia on your sister's part. You have had your discharge for three years. The property was legally your mother's and she was still alive. If it was put in trust without your knowledge in another state do you honestly think your state BK court/trustee is searching the country for anyone's hidden assetts to that extent? The trustee did his/her job, you weren't hiding a million dollars. Try thinking about it for a few minutes...how much was 1/4 of this condo worth? How much debt did you have? Would it have been worth the trustee's time to go through to get what it was worth to split between your creditor's? Did you get to claim all of your exemptions or was there so little equity and so much debt it wouldn't have mattered? It just sounds like your sister is trying to make trouble for you. I would consider calling the attorney that did your chapter 7 if you are still uneasy or if you think your sister may try to dredge this up just to see what they say about it.

Thank you for answering. I am afraid of what to do because right now I'm selling my house and in the process of getting a preapproval to buy a home in VA. So, I didn't know whether to open this case up again. I was told that when they sell the condo, the buyers will not be able to buy it because there will be a lein because of my bankrupt. Then I was told that at closing I would have to sign an affadavit that I never was in bankrupt, which I cannot do. I called 2 lawyers and both said I should open the case and claim it as a asset, but I changed my mind, because the mortgage Co. told me to save money right now for preapproval, but should I reopen it when I get the money from my home? My supposed share is only about 50,000 if that. I believe in 99, we discharged under that amount. What will happen when they sell the condo, will I be in trouble?? Thanks for any replies in advance. Star43

Oh, and I forgot to tell you, they had sold the condo to us for $1, it wasn't in trust or life estate. Even though I didn't know the details, and Mom still lived there and paid the taxes, could I be in trouble now? I don't think that in 99 the creditors would of thrown Mom out of the condo to get their 30,000. Right? Star43

[bigun]

Star,

Forget about it. It's been 3 years. The trustee has gone on to other things. You should as well.

True story. In 1995, a good friend business failed and he filed a Chaper 7. His parents lived 100 miles away in the same state and were very well off. In 1998, his Dad died. He is helping his Mom get stuff placed in her name. She hands him bank statements with the parents name on them as well as his and his brothers names. They was about $300K worth of CD's with him listed as an account owner. His folks did that without telling him or his brother in the 1980's to make settling their estste easier. He never knew about it and he has never said anything to the trustee either.

Quit living in fear and letting your sister bully you.

Thank you big gun. It really HAS eased my mind. I will forget about it until I have to face it when they sell the condo. Maybe I won't even show up at the closing!! Star43

Well, now I got a letter from one of the 2 lawyers I called for advice. He says that he suggested that I reopen this bankrupty case and claim the 1/4 condo property!!! He explained that it would cost $1000 to file with one hearing, and if I wanted an exemption, we could discuss this later for another fee. He stated that he advised me to reopen thi immedietely. I'm trying to save some money to get preapproval on a new home, he knows that, and thats why I told him I would have to wait on this. Is he trying to drum up business, or am I in trouble?? Thanks star43

I guess at this point if I were you I would consider going back to the attorney that originally filed your BK and ask his advice. $1000 sounds a little pricey to me for reopening this file. I guess the worse that could happen is if you have to reopen it and tell all to the Bk courts you may have to pay your creditors but as you said you filed for less than what your share of the condo is worth so you would still come out ahead. I was always under the impression that once a creditor chose to not show up at the 341 they forfeited their rights to collect the debt forever but perhaps somewhere buried in the law books there is a loophole for them to get back what is owed in a case like this. I would try a little blackmail on sis too. She thinks she has you over a barrell???? How about a little government welfare fraud on her part? Hiding Grandma's assets and mom's assets so they can't be sold to pay for their hospital, nursing home care etc. is a HUGE offense. Since you weren't aware and your signature doesn't show up anywhere she would be the one in hot water. If this is the case then not only does your BK no longer play a part but no one in the family gets the proceeds from the condo if it gets sold except Medicare which it sounds to me it should be rightfully theirs anyway. Hiding assets is a big offense and your sister should stop being "holier than thou".

[bigun]

Star,

This is one of the few times I'd suggest ignoring a lawyers advice. Forget about it and go on with your life.

I do like friend Skwirl's idea about approaching Sis on the Medicare deal. Tell her if you have to abide by the law, you'll make sure she does as well. Let her know you are all equal partners and if you get nothing, she won't get anything either. It sounds as if the estate means a lot more to her than it does to you.

Just want to thank you attornies for giving me the right advice. I am not going to worry about this chaos and hatred and greed anylonger! Thanks again star43