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 WALLSTREETESQ Your Own Question
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
16356563
Type Your Bankruptcy Law Question Here...
WALLSTREETESQ is online now
A new question is answered every 9 seconds

HOW DOES AN IRREVOCABLE TRUST IMPACT PERSONAL BANKRUPTCY ?

This answer was rated:

HOW DOES AN IRREVOCABLE TRUST IMPACT PERSONAL BANKRUPTCY ????

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 :

This is a complicated matter,

WALLSTREETESQ :

the language of the trust will have to be examined to make sure it is truly irrevocable and has a spendthrift clause,

WALLSTREETESQ :

if it does have such language and was prepared carefully, the trust would not be part of the bankruptcy estate, and the assets would be protected

WALLSTREETESQ :

Also prior to placing assets into a trust the individual must understand that in bankruptcy, debtors must report all transfers made within one year of signing the bankruptcy petition. In conjunction with the one year “look back” period in bankruptcy, creditors may also use the Fraudulent Transfer Act to reach assets that have been transferred without fair consideration within their four year “look back” period as well.

WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you
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 : This is a complicated matter,
WALLSTREETESQ : the language of the trust will have to be examined to make sure it is truly irrevocable and has a spendthrift clause,
WALLSTREETESQ : if it does have such language and was prepared carefully, the trust would not be part of the bankruptcy estate, and the assets would be protected
WALLSTREETESQ : Also prior to placing assets into a trust the individual must understand that in bankruptcy, debtors must report all transfers made within one year of signing the bankruptcy petition. In conjunction with the one year “look back” period in bankruptcy, creditors may also use the Fraudulent Transfer Act to reach assets that have been transferred without fair consideration within their four year “look back” period as well.