What constitutes a fraudulent transfer for bankruptcy purposes?
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What constitutes a fraudulent transfer for bankruptcy purposes?
Nearly 2 years ago I bought a home from my parents on land contract for $35,000. My parents own the property, they have no mortgages or liens on it. My parents are thinking about bankruptcy and want me to get a mortgage for the house, give them $35,000 so they can buy themselves another house before filing chapter 7. First off, is that fraudulent on their part? And if I am not able to qualify for a mortgage, do I lose my home?
Asked on February 15, 2013 under Bankruptcy Law, Indiana
Answers:
eric redman / Redman Ludwig, P.C.
Answered 11 years ago | Contributor
your parents have a 35000 asset now that they cannot protect- your land contract/house.
if they get the 35000 and buy a house to live in it will be protected under indiana law. there is nothing wrong with what they are trying to do.
if you have a valid land contract- is it recoreded in the county?- then you have a right to keep paying their bankruptcy trustee and keep the house.
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