Posted: April 6, 2020
When you transfer property before you file Chapter 7 Bankruptcy there are several factors your Chapter 7 Trustee will look at to determine if the transfer was appropriate. The Trustee will make a determination if the transfer was made with the intent to commit fraud, if less than valuable consideration was received for the transfer, the timing of the transfer and how you disposed of the funds, if any, received from the transfer.
The Trustee may seek to avoid the transfer if you made the transfer with the intent to hide the property from the reach of your creditors and the transfer was made within two years of the bankruptcy filing, or six years in the State of New York. Further, you must be able to show to the Trustee that you received valuable and fair consideration from the party you transferred the property to, otherwise, that is another basis for the Trustee to seek to recover the transfer as fraudulent. If the transfer was made for valuable consideration and the funds were used to pay bills, such as rent or mortgage, utilities or car payments, this would be a valid defense if the Trustee was seeking to avoid the transfer of the property.
It is extremely important to consult with an experienced and competent bankruptcy attorney prior to taking any action. Kirschenbaum & Kirschenbaum has over 45 years’ experience in dealing with all bankruptcy matters. Please contact one of our attorneys today.
For assistance with all Bankruptcy matters, please contact us:
Ken Kirschenbaum, Esq. (516)-747-6700 Ext. 301 or ken@kirschenbaumesq.com
Stacy Spector, Esq. (516)-747-6700 Ext. 304 or sspector@kirschenbaumesq.com