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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I Quit Claimed the deed of my house to my son in September

Resolved Question:

I Quit Claimed the deed of my house to my son in September 2007. Absent fraud, as a practcial matter, when does that tranfer become exempt from a bankruptcy trustee?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.

Hello,


The Trustee in bankruptcy has the power to set aside certain transfers made prior to filing bankrupcy called "fraudulent conveyances".


A transfer of the debtor’s assets to a third party, with the intent to prevent creditors from reaching the assets to satisfy their claims, is called a “fraudulent conveyance”.

Bankruptcy Code §548 provides for the avoidance of fraudulent transfers within two years before the bankruptcy filing date. Transfers to self settled trusts and similar devices are subject to a longer avoidance reach back (10 years).


Thank you,
FLAandNYLAWYER

Customer: replied 7 years ago.

Counselor, I gifted my interest (Quit Claim) in my personal residence to my son in Septemebr 0f 2007 before I incurred any of the debt that I am looking to get discharged via Chapter 7. If I can, should I wait until after September 2009 to file? By stautue, wouldn't I be better protected?

 

I have one other question that I would appreciate an answer to. Absent fraud, are SBA Loans dischargable in bankruptcy? As you know, the SBA has "blanket collateral" protection language in all of their loan terms. Does this language hold up in Bankruptcy? Thnak you

Expert:  Ellen replied 7 years ago.
Hello,

I gifted my interest (Quit Claim) in my personal residence to my son in Septemebr 0f 2007 before I incurred any of the debt that I am looking to get discharged via Chapter 7. If I can, should I wait until after September 2009 to file? By stautue, wouldn't I be better protected?
Regardless of when the debt was incurred, the Trustee in bankruptcy can set aside the transfer if you file prior to September, 2009. Therefore you should wait until after September, 2009 to file.

I have one other question that I would appreciate an answer to. Absent fraud, are SBA Loans dischargable in bankruptcy? As you know, the SBA has "blanket collateral" protection language in all of their loan terms. Does this language hold up in Bankruptcy?
The personal liability on SBA loans is dischargable in a bankruptcy. Blanket collateral language without additional UCC filings or mortgage documents does not usually properly collateralize the loan.
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