Transfer title to LLC or Trust in CA?

[garyys]

I have looked around and have not found anything regarding this topic yet. I am not looking for specific legal advice just some ideas or opinions.

I'm in California. Can I transfer the title of my home to a LLC, trust, or some other type of corporation (owned by me) and let the foreclosure affect the business credit, not my personal credit? I am guessing no, or I would have found more information about it online.

Thanks for your opinions and ideas.

Gary

[ProfessorShays]

Back to the shades of the late '70s and early '80s for this idea. It really wasn't used to avoid the impact on your credit since that isn't tied to the property owner but the obligor on the promissory note (the borrower). It was used as a mechanism to forestall foreclosures by placing the ownership in a newly established corporation and then filing a Chapter 11 proceeding for the corporation bringing into play the Section 362 automatic stay.

This technique quickly lost favor with bankruptcy judges, and cases following this pattern face a good chance of being dismissed based upon a bad faith filing. This sort of continued practice brought about the identification of a new category of debtor under the Bankruptcy Code, being a "single asset real estate debtor." The term “single asset real estate” is defined as “a single property or project, other than residential real property with fewer than four residential units, which generates substantially all of the gross income of a debtor and on which no substantial business is being conducted by a debtor” other than operating the real property and which has aggregate noncontingent liquidated secured debts of no more than $4,000,000. 11 U.S.C. § 101(51B).

The Bankruptcy Code provides circumstances under which creditors of a single asset real estate debtor may obtain relief from the automatic stay which are not available to creditors in ordinary bankruptcy cases. 11 U.S.C. § 362(d). On request of a creditor with a claim secured by the single asset real estate and after notice and a hearing, the court will grant relief from the automatic stay to the creditor unless the debtor files a feasible plan of reorganization or begins making interest payments to the creditor within 90 days from the date of the order for relief.

The interest payments must be equal to the current fair market interest rate on the value of the creditor’s interest in the real estate. 11 U.S.C. § 362(d)(3).

Daniel