Remainder Interest and Life Estate with Bankruptcy?

[NotAHappyCamper]

Hi,

I am new to this forum and I am going to have to file bankruptcy. It is something that I should have done long ago, but I had that old bury your head in the sand mentality. Anyway...my mother had gone to an attorney a couple of months ago and changed the deed of her house to give herself life estate and my sister and I remainder interest. I think (am almost 100% sure) that I will qualify for a Chapter 7. How is this going to affect my mom's house? I know that it is not an exempt asset in my state, but I can't see that being a very liquid asset. My mom's house is a small, one bath brick house in a lower middle class neighborhood. Anyone who could offer me some insight into what I should expect, please help me. Thank you so much.

[LadynRed]

That depends.. if you only get the house once your mother passes away then it's unlikely the Trustee would do a thing, he might have a VERY long wait. On the other hand, if your name is on the deed now, then your 'share' of the house IS an asset.

Find out how much equity there is in the house, and how much it would sell for if you had to sell it tomorrow. Your mother's life estate may prevent any action at all, that's really a question for your lawyer.