Need HELP on this one - Property Question

[Dollar Bill]

To my surprise my atty seems to be very interested in this transaction.

My parents purchased property in 1994. An apt building. They placed it in my name in 1998 or so. In 2002 I refinanced it and took out 60k to pay off credit cards. Since, I have taken full benefits of the mortgage interest etc on my tax return. This property technically still belongs to my parents. In 2004 they decide they wanted to sell it. We sold it and a profit of 137k went to them. I didn't touch a penny. 38k wired directly to my dads business acct. and 95k or so wired into another biz or pers account of his.

My atty is concerned that the trustee could ask if I have transfered any prop. in the last 4 years. He says they usually simply ask for the last year or sometimes two. If they ask for the last four years I have to say "yes." The trustee will then ask "what did you do with the money?"

Since the money all went to my parents, the trustee could go after them etc etc.

WHAT DO YOU ALL THINK ABOUT THE LIKELYHOOD OF THIS HAPPENING?

IF I WAIT UNTIL MID JULY TO FILE, I COULD THEN ANSWER NO. I HAVE NOT TRANSFERED ANY PROP. IN THE LAST FOUR YEARS. WOULDN'T BE SOMETHING IF THE TRUSTEE ASKED FOR THE LAST FIVE YEARS?

[Dollar Bill]

Anyone? Guru's where are you?

[Flamingo]

It should be no suprise to you that your attorney is interested in the transaction you describe. If your parents bought the property and then placed it in your name, I am assuming they deeded the property to you and the deed was filed in the Recorder of Deeds making you the owner of the property. The property would have had to be deeded in your name if you were able to obtain a refinance since a title search would have been done. When the property was sold even though you gave the profit to your parents it was yours as owner of the property. To protect yourself on this you need some notarized documentation that you did not receive anything from that sale. As to the liklihood of anything happening, no one can really say but there is always a risk to trying to hide something when filing for BK. Some trustees are like bloodhounds and it appears your attorney is concerned about the situation. The property is on public record and can be easily searched as to title transfers and ownership via one's name or the property address.

[Dollar Bill]

Thanks Flamingo....yeah, I'm just concerned that if they try to come after my dad for the money, they will not get anything. If they can't get anything will they try to throw out my case?

I have proof from the settlement statement shows the money wired to my parents. I would hope they don't think he is hiding/holding money for me after 4 years. The kicker is that I didn't have any of the debt then. All started to accrue 9 months later.