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how soon after a vehicle title is transferred, in new mexico, can one file bankruptcy?
Asked on June 3, 2009 under Bankruptcy Law, New Mexico
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
This type of transfer is not effective to put assets, here your vehicle, beyond the reach of creditors and bankruptcy trustees. Worse, such action may lead to thedenial of your discharge.
A bankruptcy trustee can recover assets transferred within 1 year of the bankruptcy filing where the debtor did not get reasonably equivalent value for the asset, or where the transfer was made with intent to hinder creditors. The "look back" period may be even longer under the law of your state, giving the trustee that same state law look back period in which to recover assets.
If you have more assets than you can protect with the available exemptions, consider filing Chapter 13 where the debtor generally keeps all of their property and "buys back" the non exempt value from the creditors through payments to the Chapter 13 trustee out of future income .