Saving a property in Ch 7

[Dollar Bill]

I have a had some property/land placed in my name by parents in 1998.

The property has been in the family since 1988. Its sort of a ranch style place that we have gone for years ending in 1998 for the good summer days. At one time it was used as a retreat destination for some churchs etc.

I am thinking of filing a ch 7. I need to keep the place. There are some tenants on the property who pay the utilities, and pay my dad direct for rent. There is no lien or mortgeg. Free and clear!

The lawyer wants to make an arguement of me holding legal title vs. Beneficial. Anyone heard of this or have been in a cituation like it?

(Basially the prop is im my name but belongs to my parents)

[HHM]

I think your attorney is trying to put a good face on an otherwise crap-shoot.

Why don't you fill us in on the background as to why you think you have to file Chapter 7. These types of "secondary" properties are fodder for the Trustee and they fight VERY HARD to get them because the property is money in the bank for them.

There are not too many strategies for dealing with non-exempt property, and I don't think the beneficial vs legal interest argument is going to have legs without some other circumstances (i.e. you being a guardian of your parents).

Honestly, if your "must" hold on to this property, you need to find an alternative to chapter 7. (But, this opinion is only based on the limited info you have supplied to date).

There is another member on here who had a Title issue with their property, the title on her property never got properly recorded, so the court denied her exemption, and sold the property. And the error in the title was not the debtor's fault...and that was a "strict" issue of legal interest. Any property that you hold legal title in becomes property of the BK estate, and if you cannot exempt it, that property becomes liable to the debts that are part of the BK.

[BKTango]

It would be a huge help to know how much property sizewise are you talking about and what state you are in, as the exemptions would help determine alot of things.

[Dollar Bill]

Thanks HHM for your thoughts.

Well I owe over 500k mostly personally guaranteed C-Corp debt that I ran up in the form of Crdt Lns. The prop land value is 60k. There are some mobiles, lake, and unpermitted building that has six rooms.

I wonder. Can I transfer the property out of my name into my dads name today, while holding on and not filing until say.....14 months??