A: The only way to protect your interest in the property from the joint owner's creditors or your own is to transfer it to a legal entity such as an LLC or an irrevocable Trust. The transfer to the Trust or LLC is still an asset in a subsequently filed bankruptcy for two (2) years after the transfer, if a Chapter 7 case is filed. In addition, the state's fraudulent transfers statute may extend that time period out for up to as much as four (4) years, and possibly more ( each state can set its own time perameters). If the property is transferred to an LLC, the members of the LLC will still have some personal liability to personal creditors as far as the property, and that also varies from state to state. Some states provide more insulation from creditors under their LLC statute than others. The bottom line is to consult an experienced bankruptcy attorney who can review your own particular, unique set of facts, and advise you on what the best options are.
