Hi Lisa,
The Answer is: ...a MINIMUM of 12 months.
REFERENCE:
DO'S and DON'TS BEFORE BANKRUPTCY - ARIZONA (see 2nd from the bottom)
http://www.doney.net/dos&donts.htm
..."DON'T put property you own into someone else's name to avoid it
being taken by creditors or the trustee. That kind of transfer is a
fraud on creditors and can result in your discharge being denied [§
727] (ABOVE). In addition, the trustee can take the property from the
person to whom it was transferred [§ 548]..."
You and he could lose the property entirely. Since this transfer has
already been made, he must wait the 12 full months or risk losing the
property.
Arizona Bankruptcy Law - Exemptions
http://www.arizonabankruptcylaw.com/exemptions.html
Homestead
- Real property, an apartment or mobile home you occupy to
$100,000; sale proceeds exempt 18 months after sale or until new home
purchased, whichever occurs first (husband and wife may not double the
homestead exemption.
- You must record the homestead declaration before sale of the home.
If there are no proceeds, as is your case where your Father is
transferring property to a family member to avoid it being sold to
satisfy creditors, then the minimum is 12 months. Another Reference:
TITLE 11 > CHAPTER 7 > SUBCHAPTER II > § 727
see 2nd paragraph under: senate report no. 95?989
http://www.law.cornell.edu/uscode/search/display.html?terms=727(a)&url=/uscode/html/uscode11/usc_sec_11_00000727----000-notes.html
..."The next three grounds for denial of discharge center on the
debtor?s wrongdoing in or in connection with the bankruptcy case. They
are derived from Bankruptcy Act § 14c [section 32(c) of former title
11]. ---------If the debtor, with intent to hinder, delay, or defraud
his creditors or an officer of the estate, has transferred, removed,
destroyed, mutilated, or concealed, or has permitted any such action
with respect to, property of the debtor within the year preceding the
case, or property of the estate after the commencement of the case,
then the debtor is denied discharge..."
--You will want to read the page above in full.
United States Bankruptcy Court - District of Arizona
http://www.azb.uscourts.gov/
Arizona Bankruptcy Guide
http://www.azb.uscourts.gov/azb/documents.nsf/e610f75d1bf0fdfc88256a1c0000a6b3/10a38ad4fc64865b07256e9e0067e5d2/$FILE/Bankruptcy%20Basics.pdf
If I can be of more assistance in regards to the waiting period to
file Bankruptcy in Arizona after transferring real property to a
family member, please don't hesitate to ask via the "Request For
Clarification" feature.
~~Cynthia
Search strategy:
Arizona bankruptcy "real property" transfer
Arizona Bankruptcy Code |
Clarification of Answer by
cynthia-ga
on
22 Feb 2005 00:58 PST
Here, someone asked an almost identical question at FINDLAW.com
..."What is the time period wherein I may legally transfer real
property to a grandchild prior to possibly having to declare
bankruptcy? ..."
http://boards.lp.findlaw.com/cgi-bin/WebX.fcgi?14@221.dI0hb8XaLPS%5E0@.ef0686b/94
..."Transferring property to someone else, for the primary purpose of
protecting it from creditors, can be a fraudulent transfer. Doing that
could result in (1) the property getting returned back to your
bankruptcy trustee and then (2) your losing you entire bankruptcy
discharge anyway. You should be very careful about this and consult
with a bankruptcy attorney in your area. However, to answer your
question, the Bankruptcy Code looks backward at transfers that
occurred one year before the filing of the bankruptcy petition. Some
state laws, however, go back as much as six years. Depending on your
particular state's law, a transfer today could be considered
fraudulent if you file bankruptcy anytime within the next six years,
and it certainly would be fraudulent if you file within the next one
year. A sale of the property for fair value, however, would not be
considered fraudulent, but you cannot simply give it away,
particularly to relatives. You really should consult with an attorney
to see what your other options might be. Good luck (and be
careful)...."
Arizona Bankruptcy Resources
http://www.arizonadebtrelief.com/Bankruptcy%20Legal%20Resources.htm
A great list of links for AZ Bankruptcy.
This is a more current link to the Exemptions:
http://www.doney.net/ex-az.htm
The Homestead Exemption was increased to $150K on August 25, 2004, and
after reading this page, it appears that the 18 month reference refers
to the proceeds identified from the sale of a home being Exept for 18
months, or until a new home is purchased with those funds, which again
gives you the Homestead protection up to $150K. After 18 months,
those funds are no longer protected. I misinterpreted that, sorry.
The ONE YEAR reference in the Bankruptcy Code leaves no wiggle room
though. That is cut and dried.
A couple more links:
ARIZONA REVISED STATUTES
http://www.doney.net/code/ars33-1101.htm
TITLE 33. PROPERTY
CHAPTER 8 - HOMESTEAD AND PERSONAL PROPERTY EXEMPTION
Article 1 - Homesteads and Homestead Exemption
§ 33-1101 - Homestead exemptions; persons entitled to hold homesteads
ARIZONA REVISED STATUTES
http://www.doney.net/code/ars33-1104.htm
TITLE 33. PROPERTY
CHAPTER 8 - HOMESTEAD AND PERSONAL PROPERTY EXEMPTION
Article 1 - Homesteads and Homestead Exemption
§ 33-1104. Abandonment of homestead; encumbrance of homestead
I'm still poking around and if I find anything useful, I'll post again.
~~Cynthia
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