How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ellen Your Own Question
Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
9968427
Type Your Bankruptcy Law Question Here...
Ellen is online now
A new question is answered every 9 seconds

If we transfer our stock from a coporation that owns property

Resolved Question:

If we transfer our stock from a coporation that owns property to our grandchildren, then file for Chapter 13 will the stock/property still be an asset that must go to the creditors?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 5 years ago.
Hello,

So sorry to hear of your difficult situation.

I am a lawyer with 25 years experience. While I am not your lawyer and do not represent you, I will endeavor to provide you with legal information through this open and nonconfidential forum.

Unfortunately the stock/property would still be required to go to the creditors. Here is why

A quitclaim or transfer of a debtor’s assets to a third party, for less than a reasonably equivalent value in exchange for such transfer, is considered to be 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).
Customer: replied 5 years ago.
Are you saying that if we transfer the stock/property and wait two years until we file, that the stock/property cannot be attached by the creditors?
Expert:  Ellen replied 5 years ago.
correct
Ellen and other Bankruptcy Law Specialists are ready to help you

Related Bankruptcy Law Questions