Re: Transfer of Property

One must list all transfers of properties and assets that were transferred one year prior to the commencement of the bankruptcy.

Re: Transfer of Property

Short answer -- there is a one year period prior to the date of the bankruptcy.

Under Section 548(a)(1) of the Bankruptcy Code if a transfer of property is made within one year prior to the date the bankruptcy is filed, the transfer can be avoided (transferred back) by the bankruptcy trustee. It doesn't matter which type of property was transferred. The fact that the property was transferred within the one-year period will make it suspect. However the trustee will have to show that the transfer was made with the intent to "hinder, delay, or defraud" creditors. This second test is not always easy to prove. Some of the easiest cases to prove fraudulent intent are as follows: 1. The transfer was to a spouse, friend, or relative. 2. The person who transferred the property is actually retaining control of the property. 3. The transfer was not openly reported but rather was hidden. (Does the person who transfers have something to hide?).

The classic case of a transfer deemed to be fraudulent is the case of transferring property to a spouse or friend. This actually occurred in a Pennsylvania case in 1946 (Levy vs. Bukes) which is a now studied in law schools. If you have transferred property to your spouse or friend/relative within the one-year rule then it will assuredly be avoided. This means that the trustee will have the authority to have the property assigned back to the person filing bankruptcy and if that property is non-exempt the trustee has the authority to sell it to pay off creditors. The best strategy to get around issues of transfers would be to wait for a year to file. Of course I am not certain of the specifics of your particular transfer. Please feel free to call me personally to discuss your situation in greater detail. I handle cases in Pittsburgh and Philadelphia. (800) 303-0720

Re: Transfer of Property

There are two relevant time frames.

You must disclose any transfers that occurred within one year of filing. That is the period applicable under the bankruptcy code to void a transfer that was done for inadequate consideration.

The second time frame is four years. If the transfer occurred more than one year before filing, but within four years, the transfer would not be disclosed. However, if the Trustee discovered the transfer from the Meeting of Creditors or otherwise, he could still avoid it.

I trust this has been helpful, but feel free to call or e-mail on a free intial basis.