Transfering a family asset to protect it
Almost seven years ago, I purchased my parents’s home in order to give them a wonderful retirement. They continue to live in the home. Since then, I have been involved with a business that is seriously failing and am afraid that if things can’t be turned around, I will be faced with the prospect of declaring bankruptcy. In order to protect the home and ensure that my parents don’t end up on the street, can I transfer it and its mortgage to other family members? If I do so, how can I be sure that this will not be perceived as an attempt to hide my assets from my creditors? Is this even possible?
You are correct that a transfer of an asset prior to bankruptcy will be perceived as an attempt to hide assets from your creditors.
There are a number of issues to consider, including what is the house worth, and how much is owing on the mortgage? It may be possible to keep the house and deal with your debts by filing a proposal instead of a bankruptcy.
Either way, this is a very complicated situation, so you should contact a licensed trustee or a bankruptcy lawyer to review your options.