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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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may a ch 7 bankruptucy surrive a real estate transfere( to a monor under the minors act) 1

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may a ch 7 bankruptucy surrive a real estate transfere( to a monor under the minors act) 14 months prior to filing

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

Under the federal fraudulent conveyance statute in Section 548 of the Bankruptcy Code, a transfer made within two years of the date of commencement of the bankruptcy case is subject to avoidance by the debtor or trustee

WALLSTREETESQ :

In terms of the minor act, the trustee can still review the transfer to see if it was done without consideration, and if it was meant to hide the property from creditors.

WALLSTREETESQ :

Property that has been transferred to a minor or adult child with the intent to protect the asset from turn-over during the bankruptcy must be disclosed. These transfers are often attacked as fraudulent and may be lost during the bankruptcy case. The usual problem with this type of transaction is it is done without the guidance of an attorney. State and/or federal exemptions that can protect the debtor’s assets may be compromised when the property is transferred immediately before filing bankruptcy. The legal protections available to you may be lost by this transfer.



Money held in trust for your child is generally not property of the estate. For instance, a bank account set up under the Uniform Transfers to Minors Act (UTMA) naming you as custodian is usually protected. This type of account is irrevocable and the money belongs to your child, not to you. However, funds you contribute to this account during a time when you are insolvent may be found to be fraudulent transfers and the Chapter 7 trustee could obtain the funds to pay your creditors.

WALLSTREETESQ :

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Customer:

 


one more question....so, the real property, home and lot, nameing the grandmother as custodian given the the minore will not usually hold up?

WALLSTREETESQ and 4 other Bankruptcy Law Specialists are ready to help you
It may hold up, however the trustee will review the transfer, and if the trustee sees that you did not receive any financial benefit, and that the reason for the transfer was to avoid creditors, it is possible the trustee can force a sale of the property.

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