My friend advised me to transfer some of my property to my cousin before I declared Chapter 7 because it would be protected from the bankruptcy. Should I do that?
I wouldn't. What your friend has advised is a fraudulent transfer under the Bankruptcy code. The estate trustee can void a transfer to a creditor or other party made within before two years of bankruptcy filing. To void the transfer and recover the property for the bankruptcy estate, the transferee must show an intent to keep property from the bankruptcy estate.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
I wouldn't. What your friend has advised is a fraudulent transfer under the Bankruptcy code. The estate trustee can void a transfer to a creditor or other party made within before two years of bankruptcy filing. To void the transfer and recover the property for the bankruptcy estate, the transferee must show an intent to keep property from the bankruptcy estate.
