If My Parent's House Is In My Name Only Because I Helped Them Get A Loan on it, Can A Bankruptcy Trustee Seize It If I file Bankruptcy?

No, not according to a recent decision out of the U.S. Bankruptcy Court for the Eastern District of Texas. In Weisbart v. Momphard, Adv. Pro. 11-4187, ED TX 2013, the Bankruptcy Court ruled that since debtor's father really owned the house, had paid all the payments, and had paid all the maintence, insurance and taxes, and had transferred one-half ownership to his daughter only because he could not qualify for a loan that he needed to buy out his ex-wife, the chapter 7 trustee was not entitled to any portion of it.

The Court held that dad's home was held by his daughter under a "resulting trust." A resulting trust is one implied by law from the acts and conduct of the parties and the facts and circumstances surrounding the transaction out of which it arises. And the trustee was only entitled to daughter's interest in the house, which was bare legal title, not equitable ownership.