Can I transfer property before bankruptcy? 6 Answers as of September 22, 2010

Is it possible for someone who is filing bankruptcy to first transfer property to a relative so that it can be saved from creditors?

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Greifendorff Law Offices, PC
Greifendorff Law Offices, PC | Christine Wilton
This would constitute a preferential transfer and bankruptcy fraud. I do not suggest this.
Answer Applies to: California
Replied: 9/22/2010
Wade Law Firm, PLC
Wade Law Firm, PLC | Grady Wade
No. But it is possible to transfer non-exempt property into exempt property. You would want to consult a lawyer about pre-bankruptcy planning. It is not an easy answer and depends on the specific property and your ability to transfer it into non-exempt property.
Answer Applies to: Arizona
Replied: 9/21/2010
Law Office of Barbara Seeley Curtis
Law Office of Barbara Seeley Curtis | Barbara Curtis
No, you cannot transfer property before filing for bankruptcy.
Answer Applies to: Florida
Replied: 9/21/2010
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
Sure, it is possible. It is called a "fraudulent transfer" and the value of the transfer is recoverable from the relative you transferred it to for at least 2 years after the date of transfer under federal law, and up to 7 years under some state law. Additionally, if it can be proven that it was done with intent to hinder, delay or defraud your creditors, it is also a basis to deny your discharge in bankruptcy.
Answer Applies to: California
Replied: 9/20/2010
Ariano & Reppucci
Ariano & Reppucci | Chris Ariano
No, that would be considered a fraudulent transfer. However, you could sell the property to a relative for fair market value.
Answer Applies to: Arizona
Replied: 9/20/2010
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