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.
A new question is answered every 9 seconds
Ask a Bankruptcy Law question
Type Your Bankruptcy Law Question Here...
characters left:
Bankruptcy Lawyers are Online Now

Questions about Property Transfer Laws

Individuals that have a recent property transfer and filed for bankruptcy often are uncertain of the consequences that the transfer of property may incur. Uncertainties of property transfer laws and what can happen during bankruptcy with the transfer of assets often lead to questions like the ones answered below.

I gifted (quit claimed) the deed to my home to my son for estate planning purposes. Is the property transfer exempt under bankruptcy code 548 if I file a chapter 7?

Under the Bankruptcy Code’s Fraudulent Transfers and Obligations Section 548 the property transfer may be exempt. However, under your state’s Fraudulent Transfer Act the property transfer my not be exempt. Your state may have more than a 2 year look bank period. This could be used by the trustee and/or creditors to cancel the quit claim deed to your son.

In Ohio, how much time do I need to let go from when I transfer personal assets before filing for bankruptcy?

There is such a thing as a fraudulent transfer. Bankruptcy trustees are given the power to set aside or “void” certain transfers of the individual’s assets. Assets in question would be those that are unfairly placed beyond the reach of creditors. Property or asset transfer to a third party with intent to prevent creditors from accessing the property or assets is called a fraudulent conveyance or fraudulent transfer of property / assets.

There are two types of fraudulent transfers in bankruptcy law. The first is actual fraud. This involves the intent to defraud creditors. The second is constructive fraud. This involves a transfer which is made in exchange for out of the realm of consideration.

For your situation, actual fraud is committed when a transfer of property or transfer of assets is made within one year before the date of the filing of a bankruptcy petition. Timing of the transfer will be important in determining whether the transfer will stand and stay as a transfer. If it does not stand, and is deemed fraudulent, the trustee may try to recover the property or the value of the property.

Creditors that suspect the fraudulent transfer of property may be able to get a temporary restraining order and injunction to stop the transfer before it happens.

I transferred some of my cash assets to my wife via a brokerage account. Can I declare bankruptcy without involving my wife and that money?

You are allowed to file for bankruptcy protection separately. Generally speaking your wife will not be directly affected. Her separate assets will be safe. However the transfer of assets may not be safe depending on the situation in which you gave her the money. If it is deemed as a fraudulent transfer of assets by the bankruptcy trustee (gave it to her to hide it from creditors) then the transfer could be reversed.

I quit claim deeded land to my wife 10 months before I filed for bankruptcy. I have disclosed this to my attorney. What does my bankruptcy and the transfer of this property 10 months before set me up for?

The bankruptcy trustee will likely consider this as a fraudulent transfer and reverse the property transfer from your wife back to you. You can still continue with your bankruptcy. If the deed was never recorded then you could even just have your wife tear it up. Then you could amend your bankruptcy to include the property.

I put my house and all my personal property in my wife’s irrevocable trust 14 months ago. I then filed bankruptcy 6 months later. Will the transfer of property stand?

Bankruptcy petitions require any transfers of property that took place less than two years to be reported. So if you wait longer than 2 years from the time you transferred your property then you will not have to list the transfer of property on the Bankruptcy Statement of Financial Affairs. However, the trustee’s avoidance powers go back to the amount of time that your state law allows. This differs from state to state. For instance, in Utah, creditors may go back further than 2 years to cancel transfers of assets. So that would mean the trustee could go as far back as the Utah laws allow him/her.

Having the right information and understanding of property transfer laws can help when dealing with questions regarding the transfer of property. Experts can help answer questions about bankruptcy and transfer of property or what a fraudulent transfer of property is.
Ask a Bankruptcy Law question
Type Your Bankruptcy Law Question Here...
characters left:
Bankruptcy Lawyers are Online Now

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.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Last | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
  • Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
  • He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX
 
 
 

Meet The Experts:

 
 
 
  • Ron

    ASE Certified Technician

    Satisfied Customers:

    21182
    23 years with Ford specializing in drivability and electrical and AC. Ford certs and ASE Certs
< Last | Next >
  • http://ww2.justanswer.com/uploads/FO/fordguy4u/2011-12-17_222940_HPIM1257.64x64.JPG Ron's Avatar

    Ron

    ASE Certified Technician

    Satisfied Customers:

    21182
    23 years with Ford specializing in drivability and electrical and AC. Ford certs and ASE Certs
  • http://ww2.justanswer.com/uploads/lyeung1/2010-07-25_032152_tn_IMG_0241.JPG Dr. Y.'s Avatar

    Dr. Y.

    Urologist

    Satisfied Customers:

    18387
    I am fellowship trained specializing in general urology and reconstructive urology.
  • http://ww2.justanswer.com/uploads/docjohn174/2008-12-13_170143_johnask.jpg John's Avatar

    John

    Home Appliance Technician

    Satisfied Customers:

    13453
    Appliance repair business owner for over 43 years.
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    8489
    JD, BBA Over 25 years legal and business experience.
  • http://ww2.justanswer.com/uploads/dermdoc19/2010-09-30_160749_Photo_122807_015.JPG dermdoc19's Avatar

    dermdoc19

    Dermatologist

    Satisfied Customers:

    3847
    30 years practice in general and cosmetic dermatology
  • http://ww2.justanswer.com/uploads/BI/birddoctor/2012-6-22_173214_birddoctor.64x64.png Dr. Pat's Avatar

    Dr. Pat

    Bird Veterinarian

    Satisfied Customers:

    3384
    25+ years working primarily or exclusively with birds
  • http://ww2.justanswer.com/uploads/RY/rydergar/2012-6-6_192240_IMG0328.64x64.JPG Dr. Gary's Avatar

    Dr. Gary

    Cat Veterinarian

    Satisfied Customers:

    3299
    DVM, Emergency Veterinarian, BS (Physiology)