Sold property 16 months ago

[maynard]

My husband and I are being sued and can't afford to fight this lawsuit right now. The lawsuit is in both our names. My mother sold her house 16 months ago and I was on the deed even though I did not live there. I did take 40,000 from her at the time but the money from the house went to buy her a new home. Can I file bankruptcy jointly with my husband? I am nervous with this Oct 17 deadline for old laws...: If I don't will they stay the proceeding if he just files in his name? The lawsuit is for breaking a lease after my husband lost his job. I did not even sign that lease. We have already spent 7000 defending it and haven't even gone to trial. My husband now earns a high salary but we are still running in the red every month due to years of debt (not credit card) medical, 200,000 in student loans, tax bill and some past closed credit accounts. What should we do?
Karen

[StaciMM]

From what I understand, you have to answer for transfer of property within 12 months of filing BK so 16 months ago should not be an issue.

Other than that, when you list out your income & expenses, counting only what you would have remaining after BK, how do you look? The student loans would remain, as would any tax liabilities if you have them. Do not count medical or credit card payments as those would be in the BK. If the end result shows $100 or more disposable income, you may be a candidate for chapter 13. If your disposable is less, or even negative, you may be a candidate for chapter 7.

Your lawsuit situation seems more complicated than anything I can help with. If you've put $7k into fighting it, how much is the creditor charging for the broken lease? It would probably be best to consult a couple of BK attorneys for free consultations ASAP.

[Minnymouth]

You stated that your name was also on the deed of the house that was sold and that your share was 40,000.....
You stated that your mom bought another house.....now did she use your 40,000 to buy the house or buy it from the rest of the money that the house brought.(you did not say how much the house sold for). Also is your name on the new house???

Minny

[hhou812hh]

From what I understand, you have to answer for transfer of property within 12 months of filing BK so 16 months ago should not be an issue.
Other than that, when you list out your income & expenses, counting only what you would have remaining after BK, how do you look? The student loans would remain, as would any tax liabilities if you have them. Do not count medical or credit card payments as those would be in the BK. If the end result shows $100 or more disposable income, you may be a candidate for chapter 13. If your disposable is less, or even negative, you may be a candidate for chapter 7.

Your lawsuit situation seems more complicated than anything I can help with. If you've put $7k into fighting it, how much is the creditor charging for the broken lease? It would probably be best to consult a couple of BK attorneys for free consultations ASAP.

This is pretty tricky. The transfering of houses or cars for below market value they look back a year (under current law/2 years after Oct 17,05), but when you transfer the asset you aren't allowed to use it anymore. If you transfer a car for example to a friend or relative 16 months before filing that's fine, but if it's in your friends name and you still use the asset the trustee will go after it and liquidate it. The same thing applies to the house.

Todd or HHM may correct me if I'm wrong. I read the above and have no legal experience of this.

Good luck!!