Can I Give Property Away To Friends Or Relatives To Avoid Losing It In Bankruptcy?
Transferring assets before bankruptcy.

Can I Give Property Away To Friends Or Relatives To Avoid Losing It In Bankruptcy?

The short answer is “no.” Such transfers in the years before bankruptcy can be undone by the trustee. And if the court thinks you’re tying to hide assets they can deny your discharge.
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Updated: 2021-11-23
 

Bankruptcy is for the honest debtor who got in too deep financially and needs a fresh start.  Bankruptcy court is not the place to try to skirt the law  

if you have engaged in any of the following activities you should consult with a bankruptcy attorney before you file:

  • Selling assets to friends or relatives for less than the property is worth
  • incurring debts for luxury items when you can’t afford them and have no intent to pay
  • any attempt at concealing property or money from creditors. 

More. Info:
See Chapter 1 of HFB, "Who Cannot File For Chapter 7" (free sample chapter)


Legal Consumer - Law. Jurisdictional relevance: The content of this article pertains to all US states and counties.

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