Legal Question in Bankruptcy in Connecticut

Pre-Filing Property Transfer

What are the rules with regard to transfering personal property prior to filing for personal bankruptcy. I own a share in a homeowners association and the related home is held as personal property. Can this be transfered prior to filing and not be affected in the bankruptcy proceeding? My parents transfered this property via gift to my sister and myself some years ago and if it weren't for this I would probably seek relief from debts via bankruptcy.


Asked on 10/07/02, 12:21 pm

1 Answer from Attorneys
Joel M. Grafstein Grafstein & Arcaro, LLC

Re: Pre-Filing Property Transfer

The problem is that if you transfer your interest in the property to your sister it would be considered to be a fraudulent transfer and she would be required either return the property or pay its value. There is a 4 year statute of limitations. If you are living in the property, you might be entitled to a homestead exemption under Connecticut Law. If it is just personal property then you will have an exemption in the amount of approximately $9,000. Perhaps the best alternative is to have her pay the Truste the fair market value of the property less the exemption after you file a bankruptcy the creditors will get some payment. The alternative instead of a bankruptcy would be to have your sister purchase the property for fair market value and then use those funds to make payments to creditors. Good Luck.

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Answered on 10/14/02, 9:15 pm


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