E.D.N.Y. A quit claim deed can be used by a person to transfer his interest in the home if the homestead exemption is applicable and his home it is not becoming part of the bankruptcy estate. Absolutely false! Explaining California Prop 13 transfer rules. For instance, if you decided to quitclaim deed a property in bankruptcy and the U.S. Bankruptcy Courts find out, your petition can be dismissed. Whether or not someone who files bankruptcy also needs to do a quitclaim deed or deed in lieu of foreclosure is a question that many bankruptcy attorneys and clients are asking themselves these days. The court can grant a hardship discharge before completion of all required Chapter 13 plan payments. The lender has approved a short sale settlement of 25K. elements of a valid deed. There may be some tax consequences if the value of the property is less than the amount that you owe. play. In re Zair, 535 B.R. Hello again. Chapter 7 vs. Chapter 13 Two forms of bankruptcy are available to individual debtors: Chapter 7 and Chapter 13. deed and title in writing ... quitclaim deed. Regarding the Chapter 13, if the property was quit claimed to you while you were in bankruptcy, you were supposed to report it to the bankruptcy trustee.Refer to the following for the procedure that you were supposed to follow regarding the sale of the property. Q: The family trust has one piece of real estate in California. Can he do a quitclaim deed to me before I close and take official ownership, so that I can market the house for sale? You should … Question Detail: My ex-wife filed a Utah Chapter 13 bankruptcy prior to our divorce being granted. It doesn't matter whether you retain ownership or place the assets in a trust – they're not in jeopardy because your debts are satisfied through your disposable income each month. We didn’t resolve the community property, and now I want to short sale the property. The bankruptcy court … You must be very very careful with transferring property before and during an active bankruptcy. Proposition 13 capped property taxes at one percent, but what happens when you transfer home ownership? 15 (Bankr. The deceased debtor will not receive a discharge, and the estate will likely remain liable to creditors. 2015) – The debtors proposed a chapter 13 plan providing that certain real property was to be surrendered to the mortgagees and title to the property was to vest in the first mortgagee over its objection. You pay the capital gains tax on the $60,000 because you received the funds. Ask For a Hardship Discharge. This means that the automatic stay is over and the creditors can start foreclosure proceedings. I am the buyer and will be closing at the 25K that is approved by the lender. real estate chapter 13. study. Since a quitclaim deed only transfers ownership rights, a debtor is free to sign a quitclaim deed after declaring Chapter 13 bankruptcy." In fact, selling or using a quitclaim deed to transfer property can have many consequences. My brother filed chap 13 and inc his house. If the lender is willing to take a deed from you in lieu of filing a foreclosure, then the answer is Yes, you can quit claim the property to the lender. She has refused to sign a quit claim deed, stating that she has protection from signing anything per her bankruptcy protection. You are the seller. general warranty deed. warrant title forever that grantor is true owner ... warranty title only during grantor's ownership that he is true owner. bargain and sale deed. ... then the filer may lose the home as it may be listed under non-exempt property while filing chapter 13 bankruptcy. A few years ago, most banks and mortgage companies (we will call them banks for this blog) foreclosed on a property – house or land – within three to four months of the bankruptcy filing. 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