If my father has to claim bankruptcy due to unexpected medical expenses, is it legal for a family member to purchase his assets?

Get Legal Help Today

 Secured with SHA-256 Encryption

If my father has to claim bankruptcy due to unexpected medical expenses, is it legal for a family member to purchase his assets?

I think it’s legal as long as you pay face value. Is that correct? Any suggestions?

Asked on March 2, 2013 under Bankruptcy Law, Colorado

Answers:

Elena Eckert

Answered 8 years ago | Contributor

A family member may purchase the assets and, provided the fair market value is paid, such transaction should not be invalidated as fraudulent by a bankruptcy trustee.  The proceeds of the sale of the assets will be a part of the bankruptcy estate, however, once the bankruptcy petition is filed.  

However, all transactions conducted within certain period of time before a bankruptcy petition is filed are subject to scrutiny and there is always a risk of bankruptcy trustee "unwinding" the transaction.  


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption