The next letter in the Bankruptcy Alphabet is Q, which stands for Quit Claim deed. Many of my clients who call to ask about this refer mistakenly to it as a “Quick Deed”. I’m assuming that they heard something about this method of transferring property, but didn’t know the actual term.
A Quit Claim deed is a legal document which can transfer an interest in real property (land) from one person (or entity like a corporation) to another. The key concept is that a Quit Claim Deed only transfers whatever interest (legal claim) in the property the person had. And, anyone can sign one of these deeds. So, for instance, I could sign a quit claim deed to City Hall and give it to you. But, it would only be worth something if I truly had a legal claim to City Hall. I don’t, so the document is worthless.
This is different from a Warranty Deed, where the person who gives the deed to someone else Warrants (guarantees) that he or she actually owns that property. Typically, this is the type of document people use when they sell their house to strangers. Then, the stranger is assured that the person who is giving them a deed to the house actually owns the house they are buying.
How does this relate to Bankruptcy? Many people hear things (incorrect advice) that they can just “quick deed” their house or other property to someone else, file bankruptcy and avoid the bankruptcy court from taking the property. This is untrue because, depending on the situation, the trustee can usually undo any quit claim transfer by suing the person who got the property, in order to get it back and sell the property, and use the proceeds to pay the creditors (companies owed).
So the moral of the letter Q in Bankruptcy is that there is no Quick Deed, and that you should consult an experienced Bankruptcy attorney before trying to transfer property, especially when you owe many bills that you cannot pay.
For questions or more information on this or any other bankruptcy, debt problem, collector harassment, or for foreclosure defense, call us at the Law offices of Daniel J. Winter. We have offices inChicago,Oak Lawn,Skokie, and Waukeganto serve you.
Daniel J. Winter
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Chicago,IL60604
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