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Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 30903
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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a south carolina real estate developer borrows money from a

Resolved Question:

a south carolina real estate developer borrows money from a bank to develop a subdivision and build spec houses. borrower is in default on one of he loans. bank is in pre forclosure. is it legal to move ones money off shore to avoid bank freezing bank accounts. borrower does not want to file bankruptcy. are any laws broken or is this just a civil situation.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 7 years ago.

This is not a good idea. There is a law known as the fraudulent transfer act, which allows creditors to reverse any transactions a debtor makes to attempt to hide or secure assets from collection or attachment by a creditor.


This is generally not considered a criminal act, but a civil one.

Customer: replied 7 years ago.

myrtle beach sc, South Carolina

Already Tried:
the bank has filed for forclosure om my subdivision. the forclosure is being delayed because one of my subcontractors is suing my bank because my bank provided a letter saying that they would fully fund the improvements of the subdivision. in the mean time, i have liquited some assets and have some cash but not close to what the deficency will be with the bank after foreclosure. i do have a bankruptcy attorney handeling this but he has had little communcation with the bank and their attorney to try to work this out. the bank is wachovia -
my question:
what are the ramifications if i move my liquid assets to an offshore account for protection? am i breaking any laws? i have done nothing under oath at this point. i don't want to give the bank a current financial statement. if i do move my cash offshore in a protected account, what can the bank do other that the damange that will be done to my credit and putting a judgement on all my real estate holdings?
Customer: replied 7 years ago.

it may not be a good idea but what can the bank do?


Expert:  Roger replied 7 years ago.
The bank can sue you under the fraudulent transfer act, which presumes that you did this to hinder the creditor's ability to collect from you, and if you can't prove some other justifiable reason, the court will order the transaction to be reversed.
Customer: replied 7 years ago.

what happens if i refuse to reverse the tranaction?

Expert:  Roger replied 7 years ago.
The judge can hold you in contempt of court and put you in jail until you agree.
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