It’s natural to want to safeguard your assets from creditors, which is why so many people file for bankruptcy. When done right before filing bankruptcy, however, many sorts of asset transfers are just forbidden. Take a look at a few examples:
1. Transferring your property into someone else’s name. Because they don’t want to lose their assets in bankruptcy, some debtors make the mistake of transferring their assets into the name of a cousin or acquaintance. Such acts, however, are illegal and, in many situations, unneeded. If you transfer property into someone else’s name, particularly within a year of filing bankruptcy, the bankruptcy trustee may try to regain the property and refuse your bankruptcy petition.
2. Selling your asset for less than its market value. If you sell an asset for less than its market value, the bankruptcy trustee may consider it an improper transfer, especially if the item is not exempt in bankruptcy. For example, depending on the asset’s worth, the timing of the sale, and whether or not you sold it to your son for 50% of its worth, the bankruptcy trustee may deem it an improper transfer.
3. Paying off family loans. Any payments you made to family members within 90 days of filing bankruptcy will be disallowed by the bankruptcy trustee. In bankruptcy, these kind of privileges are prohibited since they put other creditors at a disadvantage. If you paid off a family loan right before filing bankruptcy, the trustee may require that the family member pay the money to the bankruptcy trustee, depending on the amount.
If you want to transfer or sell assets before filing bankruptcy, talk to a Bethlehem Bankruptcy Lawyer to find out if you can do so without negative consequences.
Contact Bethlehem Bankruptcy Lawyer for a FREE CONSULTATION at 610-510-2073. You can depend on Bethlehem Bankruptcy to provide clear information on bankruptcy law, each step you must complete, and how to best approach and manage life after bankruptcy.