Is sell and back lease a good idea when filing for bankruptcy?

Is selling and then leasing back my home that has no mortgage owed a good idea when filing for bankruptcy? I would be financing the home. And then renting it in order to keep my place of residence. Can they take your furniture and everything in the home to pay back the creditors?

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Posted September 11th, 2011 in Bankruptcy Q and A. Tagged: , , , .

4 comments:

  1. glenn:

    In my state if you file for bankruptcy they can not take your home away from you but they can take money away. If you have a paid off home and you sell it and get cash- it seems like you are putting your money at risk.

    September 11th, 2011 at 10:43 am
  2. Beverly S:

    If you sell your home you do not own it, so you would not be financing it. You would be renting from the new owners if they let you.

    September 11th, 2011 at 10:43 am
  3. golferwhoworks:

    selling to who? The only way this can be done is to sell to another and then lease from them. Then you are not the legal owner. You become a renter. Now what your creditors may want to be made whole is a different situation. The law allows you to keep some personal items in a chapter 7.

    September 11th, 2011 at 10:43 am
  4. AceHigh:

    The bankruptcy trustee will look into every transaction you had prior to your bankruptcy. If you transfer your assets to another person or hide your money from the creditors, you could be charged with bankruptcy fraud. Your creditors could also survive your bankruptcy if they believe you try to defraud them.

    http://www.thestar.com/article/600576

    September 11th, 2011 at 10:43 am

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