Cant I Just Transfer My Assets To A Friend Or A Living Trust Before I File For Bankruptcy?
These types of transfers may be considered fraudulent and your Chapter 7 trustee may be able recover the property within a year of filing. Factors will be considered such as the timing of the transfer as well as whether it was a gift or given with disproportionate value in return. The rules on fraudulent transfers apply to everyone and not just family members, but the amount of time allowed for the trustee to recover the property may be different depending on who the transfer is made. In a transfer to a trust, the law may vary depending on which state you are in and on the type of trust.
Other Your Assets and Bankruptcy FAQs
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Q:
If I File For Chapter 7 Can I Keep Some Of My Property?
A: In general, Chapter 7 bankruptcy gives up all of your non-exempt property. Exempt property is property defined by state law which is not discharged from …
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Q:
Will I Lose My House, Car, And Other Personal Property?
A: Not necessarily, each state has laws that determine which items or property are exempt from being taken away. For example, many states exempt personal items such as …
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Q:
Will I Be Required To Sell My Assets?
A: Yes. A lot of your property which is deemed a necessity will not be released, but filing bankruptcy (under Chapter 7) will often require you to give up certain types …
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Q:
What Are Exemptions?
A: 11 U.S.C. º 522(b) allows an individual debtor to exempt real, personal, or intangible property from the property of the estate. State law protects exempt assets …
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Q:
What Is Redemption?
A: Redemption allows an individual debtor (not a partnership or a corporation) to keep tangible, personal property intended primarily for personal, family, or household …
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