No morality police please

[ehustlin]

What is the name of your state? Calif
What is the difference between secured and unsecured debt. Can I still file chap 7 if I own a piece of land and mobile home out right and in the clear? Do I or should I give it away to a close family member? I need a fresh start but I don't want to lose my land.

 

[I AM ALWAYS LIABLE]

What is the name of your state? Calif
What is the difference between secured and unsecured debt. Can I still file chap 7 if I own a piece of land and mobile home out right and in the clear? Do I or should I give it away to a close family member? I need a fresh start but I don't want to lose my land.

My response:

. . . and you think we're going to instruct you how to commit Federal Bankruptcy fraud?

Not with my license to practice.

IAAL

 

[HomeGuru]

Morality police here.

 

[Ladynred]

Secured debt is something that is 'secured' by real property - a house, a car, property - something that can be sold to recover the cost (basically).

Unsecured debt is just that, it is backed by NOTHING 'real' that could be sold to recoup the money - its backed only by your 'promise' to pay it back.

If your home and land are at 100% equity and that amount is above your state's exemptions, you will lose it. If you don't want to lose anything, then Ch 13 is what you'll have to do.

Transferring property such as you mentioned would be considered a fraudlent conveyance of assets and you WOULD be in deep doo-doo for it. The FBI can come knocking if you're messing with bankruptcy fraud. It does carry jail time - I believe its up to 10 years !!

 

[ehustlin]

Thanks for the info. I don't want to break any laws that is why I wanted to know the difference and If there was a way to keep my property legally. What and how does an excepmtion limit work.

 

[Ladynred]

CA has a farily generous homestead exemption, but, as I said, it has to be your PRIMARY residence. CA also has 2 systems to choose from when filing for BK.

The exemptions are $$ limits for what you can keep, basically. If anything falls OUTSIDE of those limits, its most likely forfeited to the Trustee. The Trustee sells the property and distributes the money to your creditors.

Here are the CA exemptions:

http://www.thebankruptcysite.com/exemptions/california.htm

For real property, the exemption goes to EQUITY, so if you have 100% equity thats above the exemption, you stand to lose the property.

 

[ladyc4]

If you own the property/mobile free and clear, can you borrow against it to pay off other creditors,and maybe avoid bankruptcy?Or outright sell it(if you don't live there?) Sounds like if you go Ch. 7 you run a pretty high risk of losing it anyway