Attorney Answers Los Angeles County Bankruptcy QuestionCan I quick sale my home to my fiance before I file for bankruptcy in Los Angeles, California? If I quick sale my home to my fiance and file for bankruptcy in Los Angeles, California before we are married, how will that affect my husband?
Attorney's Response to Bankruptcy Question from Los Angeles CountyRegarding the bankruptcy in Los Angeles, CA, I think this is likely to give your husband a lawsuit, not a home. It sounds like you are unable to pay your mortgage, you may already be in default, and you owe more on the loan than the property is worth today. By "quick sale" I'm assuming you mean a quitclaim deed. There are a few problems. First off, the mortgage lien stays with the property until it is satisfied, which means your future husband wouldn't get the house, really, he'd just be one more defendant named in the foreclosure proceedings. Second, even if you do have equity in the property, if you transfer it for less than fair value, in this situation, it's considered "fraudulent as to creditors," which means that once you file bankruptcy, it's almost certain that the bankruptcy trustee will do what is necessary to put the house back into your bankruptcy estate (meaning it will almost certainly be gone). Your best case is that it makes no difference. Your worst case is that your future husband gets accused of conspiring with you to defraud your creditors. Consider consulting with a Los Angeles bankruptcy attorney before seriously considering this move. There are risks involved. Have a question for a Los Angeles County Bankruptcy Attorney, ask here.

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