It is often when meeting with potential clients at Halcomb Singler, LLP about bankruptcy that people tell me something to the effect of, "The car, bank account, etc., isn't mine...it's just in my name."
I cannot stress how important it is to consider the results prior to putting an asset or liability in your name or taking your name off of an asset. What I find that people forget is that if an asset is in your name you own it regardless of whether you "feel" that you own it. For example, if your name is on a bank account as an owner just so you can pay bills for your elderly mother in the even of an emergency you own that bank account. A creditor of yours may be able to attach that bank account even if you haven't put a dollar in the account. Similarly, if you put a vehicle in someone else's name it is their vehicle, not yours. The way that ownership of property is structured legally is very important and it is legal ownership that controls in bankruptcy.
In short, words mean things....and legal ownership means everything.
If you are considering filing bankruptcy it is important that you tell your attorney about any joint property, accounts, etc that are in your name and "aren't really yours" or any assets in another person's name that "really are yours." For example, the way that a home is owned by a married couple can be very important in bankruptcy. In Indiana if a husband and wife own their home by tenancy by the entireties and a judgment is taken against just one spouse then no judicial lien will attach to that real property. However, if the judgment is against both spouses then it will be necessary to move to remove the judicial lien in bankruptcy. If you are confused by this paragraph you are not alone. The impacts of legal ownership are complex and should be explained by a legal professional.
In short, it is very important to understand the pros and cons of how a home is deeded, how a bank account is held or how a vehicle is titled. Before setting up ownership make sure that you understand how the asset should be titled and don't be afraid to ask questions of the professional you are working with to set up that account or title that asset. If you don't feel that the professional really knows the answers to your questions wait to title the asset until you have sufficient answers to your questions. Even if it is not necessary for you to file bankruptcy, the ownership of assets can affect other aspects of life and should be carefully considered.
In almost all circumstances it is ill-advised to change legal ownership of assets or property on your own prior to the filing of bankruptcy, so make sure that you consult with an attorney prior to doing so (read more about what NOT to do if you are considering bankruptcy). If you are considering bankruptcy and are unsure how your joint ownership of property, an account, ect., would impact your Indiana bankruptcy feel free to contact me at 317-575-8222 or click here to fill out our potential client information sheet and we will contact you. There is no charge for this consultation. I am happy to answer your questions about bankruptcy as well as how your legal ownership of assets may impact your bankruptcy. In almost all circumstances it is ill-advised to change legal ownership of assets or property just prior to bankruptcy, so make sure that you meet with a bankruptcy attorney licensed in your state prior to making any such changes.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses
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