Saturday, April 14, 2012

transfering property before filing bankruptcy

Many people give away property and then see an attorney about filing bankrutpcy. If you give away property or sell it to a relative for less than value and then file bankruptcy, the bankruptcy court will take the property away from the person you gave it to, sell it, and distribute the proceeds to your creditors. The court can go back two years for these kinds of transfers and, in some cases, up to five years. Many times, I can protect your property in bankruptcy if you do not transfer it. Once you give it away or sell it cheap to a family member, it becomes fair game for the creditors, and I cannot protect it for you. If you are thinking of filing bankruptcy, see an attorney BEFORE deciding whether or not to give away property. You may even want to do some long-term planning in this type of situation.

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