QUESTION
Is it legal to sell your property to a friend or family member then file bankruptcy then have it returned to you in time?
Asked on Jan 29th, 2017 on Bankruptcy - Michigan
11 ANSWERS
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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Transactions to insiders are closely scrutinized; you must sell for fair market value, or at least liquidation value (a bit less than fmv). A trustee can easily set aside any transaction completed within 2 years of filing.
Answered on Apr 07th, 2017 at 6:59 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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It is entirely illegal. There are both criminal penalties and the loss of your discharge if you try it. Do not even think of it. Instead consult an experienced reputable lawyer who might be able to help you achieve your goals lawfully.
Answered on Apr 04th, 2017 at 9:14 AM
That is usually referred to as a fraudulent transfer, and a bankruptcy trustee can pursue all parties to this transaction. The court can impose penalties, both civil and criminal.
Answered on Apr 04th, 2017 at 9:14 AM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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NO! It is called bankruptcy fraud. It is a felony and you can be sent to jail for doing it.
Answered on Apr 04th, 2017 at 9:13 AM
Yes (although "illegal" is not the correct terminology).
Answered on Apr 04th, 2017 at 9:12 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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This sounds like bankruptcy fraud. If you've got a $50,000 car and you sell it to your brother for $50,000 and file bankruptcy, the court will require you to turn over the money to pay your creditors, so why bother with transferring the car. But if you've got a $50,000 car and you sell it to your brother for $10 and file bankruptcy and don't disclose it to the court, that's fraud. People file bankruptcy because they have financial problems but people who cheat in bankruptcy soon have criminal problems. When you have criminal problems, you'll remember back to just having financial problems as the best days of your life.
Answered on Apr 04th, 2017 at 9:11 AM
No, you can not do that they will not allow that.
Answered on Apr 04th, 2017 at 9:11 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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It would be a fraudulent conveyance.
Answered on Apr 04th, 2017 at 9:11 AM
No, this is called a fraudulent conveyance.
Answered on Apr 04th, 2017 at 9:10 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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No, that would be a fraudulent conveyance.
Answered on Apr 04th, 2017 at 9:10 AM
Bankruptcy Attorney serving Alpena, MI
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Carl C. Silver Attorney at Law
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If you don't get caught.
Answered on Apr 04th, 2017 at 9:10 AM