If I sell a vehicle prior to filing bankruptcy how much time must pass before the vehicle transaction is non-reversible in bankruptcy?

Question Details:

I am selling a motorbike worth $4000 dollars approximately. If sold prior to bankruptcy could it be reversed or is there a time limit that would exempt it. It would be pointless to sell it if the court will reverse the transaction.

Asked 11/4/2009 under Bankruptcy | 523 View(s) | More Legal Topics

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Bankruptcy Law Answers

Such transfers may not effective to put your assets beyond the reach of creditors and bankruptcy trustees.  Worse, such action could also lead to the denial of the discharge.   

Generally, transfers within 90 days before the filing will be presumed to be fraudulent conveyances where the debtor did not get reasonably equivalent value for the asset or the transfer was made with the intent to hinder creditors.   However  transfers to "insiders", which includes relatives, made up to 1 year prior to the bankruptcy filing, may be avoided or undone.  Additionally, the "look back" period may be even longer under the law of your state.

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