Posted by Robin on March 10, 2005 at 12:02:23:
There is no equity in the property right now it was just aquired.
Bankruptcy of a beneficiary in Land Trust - Posted by Robin
Posted by Robin on March 07, 2005 at 14:38:40:
I’m trying to see if I’m the beneficiary in a Land Trust with a property that I deeded into the Trust, how would my filing a Chapter 7 bankruptcy affect that property. Would I need to reaffirm the debt or would it be protected since there is a Trustee. The Trust bears my last name as title i.e. “Smith Trust”.
Living trust doesn’t dispossess us - Posted by John Merchant
Posted by John Merchant on March 12, 2005 at 11:34:40:
JB’s right.
Just because you deeded into your own trust, the property is not a non-asset.
A recent Dallas TX court decision was on exactly this issue, where Dr. Smith (not right name, don’t remember what it was) did this, and was found guilty by the court of trying to conceal her property, and got hit by large damage judgment…maybe criminal conviction too, for fraudulent conveyance to avoid creditors.
The law is, you or I cannot deed our property into a living trust now, where we are the beneficiaries, and thereby legally remove that property from our assets…it’s STILL ours.
Re: Bankruptcy of a beneficiary in Land Trust - Posted by JohnBoy
Posted by JohnBoy on March 08, 2005 at 16:20:52:
A land trust is not an asset tool that would protect you on this. You are the beneficiary of the trust and if you file BK you will have to list the assets of the trust since they belong to you. You would have to reaffirm any debt you owe on thew asset. If you have equity in the asset you can be forced to sell the asset so your creditors can get paid any debts you owe them.
There is no protection just because there is a trustee. That has nothing to do with it. The trust merely hides your name from public records that you are the owner and have any interest in the property. It doesn’t protect you from creditors or from filing BK. It only hides your name from showing up in public records that you own anything. If they took you to court and asked you under oath if you are a beneficiary of any trust you would have to reveal that you are. The creditor could attach any interest you have in the trust.
How much equity is in the property?