I AM OVERWHELMED WITH CREDIT CARD DEBT…

I am overwhelmed with credit card debt but put my home into my daughter’s name 2 years ago. Can you help me?

People do not realize that regardless of the reason they put their home in a relative’s name; this is considered a transfer and will have major implications in a bankruptcy case especially a Chapter 7.

A Chapter 7 trustee will look back 4 years regarding any transfer under the law and they could potentially sue the person who you transferred the home. Thus, regardless of the equity, Mr. Taieb would never recommend a client file a Chapter 7 since this could generate substantial litigation and stress which could be very costly for a client in debt.

The best way to deal with this situation is to file a Chapter 13 since the Chapter 13 trustee will not pursue the client but will have any non-exempt equity incorporated into the trustee payment. Thus, it is much better to pay this back over 3-5 years or do minimal payment on your debt then to have a Chapter 7 trustee pursue the relative to whom you transferred the home.

Mr. Taieb recently helped an 82 year old woman from Willingboro New Jersey who was drowning in debt. A few years ago she put her home in her daughter’s name since the home was in horrible condition and she could not afford the real estate taxes. Mr. Taieb’s client from Willingboro was using every penny of her social security income to pay back her credit card debts. Mr. Taieb put her in a chapter 13 due to the transfer issue and got a plan confirmed where she is making trustee payments of $250 for 3 years and then she will be totally relieved of her obligation to pay back her credit card debt.

When you file bankruptcy, disclosure is the name of the game, so you must be honest about everything regarding your property or there can be serious fines and penalties.

If you have any questions concerning this matter or any other matter contact TAIEBLAW at 856-235-4994 or visit our website at TAIEBLAW.COM, and schedule a FREE initial consultation.

Steven N. Taieb, Esq. has been a South Jersey Bankruptcy Attorney for over 34 years and is board certified in consumer bankruptcy law by The American Board of Certification which is accredited by The American Bar Association.