Will I lose my house?

[l8rd8r]

My boyfriend is filing bk for both personal and business. We bought a house in
May 2005 in his name and credit. Mines bad. One month later he sold the house to me for $1.00 and co-signed the loan.
I'm being told we need to sell the house or the IRS will take it from me because he owes $120,000 in Employment tax. Is this true? He'll be filing for BK's in 2006. He says the house needs to be sold or they will take it. I think he wants to seperate and is making up this story. If I'm the resistered owner how can the IRS take my property?

[Genenco]

My boyfriend is filing bk for both personal and business. We bought a house in
May 2005 in his name and credit. Mines bad. One month later he sold the house to me for $1.00 and co-signed the loan.
I'm being told we need to sell the house or the IRS will take it from me because he owes $120,000 in Employment tax. Is this true?

Best Advice? SEE A LAWYER!!!!

I'm not positive, but BF there may have committed MAJOR FRAUD and that's one thing you do NOT want to be involved in...We're possibly talking JAIL TIME here and you don't need a record along with bad credit in your life history...

Get a lawyer PROTECT YOURSELF..And one more thing..Think on this:

If he was so willing to do this to you, what else is he willing to do to you?

For God's Sake PROTECT YOURSELF!!!!

[Graphic]

Don't hold me to this, but I would think the trustee would look at that as a fraudulent transfer. As to whether or not you will lose your home (assuming your filing chapter 7) I would imagine there is an exception for your house (dont know what state your in so dont know how much) and i also think you have to own the house for a certain amount of time for it to be exempt to how much can be exempt ..granted the house is being payed for and you aren't default on it.

Don't hold me to any of that really.. but that's just my opinion. I'm sure others with more knowledge on it will chime in.

[StaciMM]

By transferring the house to you for less than market value, he has committed BK fraud. I don't know about the employment tax, but if there is equity in the house above & beyond what he can exempt, it will be an issue.

[l8rd8r]

He originally transfered it to me because of his exwife. She was going to put a lien on the house because he owes her money. He didn't get in trouble at the company until 5 months ago. Then he couldn't pay the employment taxes. We are in CA. We can show that the business didn't get in trouble until October when he was first unable to to pay the employment taxes. Also we put $5,000 as a down payment. He now tells me we have to move apart so they won't include my pay in his BK's. I can afford the house on my own. He wants to split the $30,000 equity to pay toward his taxes. Why do we have to live apart? He says because we comingled our lives than the IRS will take my things and paychacks too?

[l8rd8r]

Don't hold me to this, but I would think the trustee would look at that as a fraudulent transfer. As to whether or not you will lose your home (assuming your filing chapter 7) I would imagine there is an exception for your house (dont know what state your in so dont know how much) and i also think you have to own the house for a certain amount of time for it to be exempt to how much can be exempt ..granted the house is being payed for and you aren't default on it.

Don't hold me to any of that really.. but that's just my opinion. I'm sure others with more knowledge on it will chime in.

I'm not filing BK only him and the mtg is current. CA is the state.

[l8rd8r]

Does anyone know of a forum that has an attorney responding?

[StaciMM]

The time frame of when he got into trouble is not an issue. If you file BK, they will certainly look back 1 year for any transfers, and under the new law I think they look longer but I'm not sure. When it comes to 'transfers to insiders' the intent is not an issue-the result is.

If he files BK, the entire household income (including yours) and household expenses will be taken into consideration. It sounds like he has started researching bankruptcy-which is good in that no one should go into it blindly. Perhaps the 2 of you should schedule a couple of consultations with a bankruptcy attorney, where you go w/ him and have a chance to ask questions also.

Because his situation is complicated it would probably be a good idea to consult with as many attorneys as possible. Some will be more knowledgeable about business obligations than others.

[l8rd8r]

I'm going forward with selling the house prior to him filing BK. We will split equity and go our seperate ways. Will I be pulled into his Bk if we've split? Will the IRS be able to come after me for my equity share once we've completed the sale?

[AAAArt]

I'm going forward with selling the house prior to him filing BK. We will split equity and go our seperate ways. Will I be pulled into his Bk if we've split? Will the IRS be able to come after me for my equity share once we've completed the sale?

Wow, you make up your mind quickly. In 24 1/2 houra, you've decided to sell the house. (Prob. w/out any influence from BF...not!) I don't know if you haven't been listening or the people have said it too subtly. When BF sold you house for $1.00 that was a fraudulent sale. You became an accessory. If you now sell the house and split the equity, you are becoming even more involved in this fraud. The IRS will come after you. The Bk court will come after you. Taking that $30,000 could be the most costly thing you have ever done in your life and yes it "could" even lead to jail time.
Please seek legal advice before you make up your mind. Art

[StaciMM]

This is worth repeating... If he files BK, the bankruptcy court will come after you to return the property that he transferred to you fraudently. I don't about the IRS, but if it is determined that his assets should be seized to cover his obligations (and employment taxes are possibly not dischargeable) then they will probably come after you also.

These are 2 entities you cannot hide from. I can't blame you for wanting to be done with him, seeing what he has pulled you into (and of course you may have other reasons as well). With that in mind, see a couple of attorneys to find out if there are any ways to cover yourself.

In the end, it may be that cutting your losses and leaving empty handed before anything else comes to light is the best altenative. And, at least you aren't married to him-if you were, since CA is a community property state, you would owe his debts just as if you created them yourself.

Please seek legal advice before you make up your mind. Art

Please seek legal advice before you make up your mind. Art

Please seek legal advice before you make up your mind. Art

[l8rd8r]

Wow, you make up your mind quickly. In 24 1/2 houra, you've decided to sell the house. (Prob. w/out any influence from BF...not!) I don't know if you haven't been listening or the people have said it too subtly. When BF sold you house for $1.00 that was a fraudulent sale. You became an accessory. If you now sell the house and split the equity, you are becoming even more involved in this fraud. The IRS will come after you. The Bk court will come after you. Taking that $30,000 could be the most costly thing you have ever done in your life and yes it "could" even lead to jail time.
Please seek legal advice before you make up your mind. Art

I am listening. I have legal help at work and I will contact them.
What if I resell the house back to him and not take any money will that release my involment? Or am I already involved no matter what? We did'nt do this initially to commit fraud.

[StaciMM]

"Fraud" may not have been what he intended, but hiding assets (AKA transferring them to someone else) to protect them is fraudulent now matter if you realized it or not.

My best guess would be to transfer it back to him on the same terms as he transferred it to you-but don't even try that until you talk to someone for legal help. In this situation, your motto should be to look out for #1.

[l8rd8r]

This is fraud no matter what:ie we committed fraud against the xwife. Correct?

[StaciMM]

Fraud was committed by trying to hide assets, by creating a false 'sale' at a $1 value. Anyone that reviews the paperwork on that has NO SHOT at believing it was a real transaction.

I don't know what all parties are involved. I do know that the IRS and the BK court will not appreciate an effort to hide property.