BACK TO CONSUMER BANKRUPTCY

Can I shelter property by transferring it to family members prior bankruptcy?

You can probably not shelter property by transferring it to a family member. If you make a gift or other transfer for inadequate consideration to anyone, whether they’re in your family or not, a Chapter 7 trustee can recover the property or its value if your case is filed within one year afterward. If you have an actual creditor who would be entitled to avoid the transfer, even in part, under your state’s statutory or common law of fraudulent transfers, a Chapter 7 trustee can exercise that power to avoid the whole transfer.

→ Read More

If I declare bankruptcy, what will happen to tuition prepayments for my children?

Tuition prepayments are structured in varying ways. In some situations, money is actually paid to a school or group of schools. In other instances, you may have money in a 529 account, a trust fund or have it set aside in some other way for your children. In the case of a bankruptcy, what happens to that money is going to depend on the tuition prepayment plan’s structure and on the bankruptcy chapter filed.

→ Read More

Today's legal News