Hello and thank you for allowing me the opportunity to assist you.
Question: “What does this mean?”
Answer: Well, the bankruptcy trustee is correct. After a debtor files for bankruptcy, her non-exempt assets are taken and sold, and the proceeds are divided among her creditors. So, a clever debtor may think “why should I let my assets be taken and sold when I can give them to my family and friends instead? In fact, if I do that, then my family and friends will probably let me use those assets as if I still owned them.” That is called a fraudulent transfer because that debtor would basically be defrauding her creditors. If the debtor legitimately sold the asset, then that’s legal because the proceeds from the sale can be taken to repay her creditors just like the original asset could have been taken.
So, the purpose of the law is to prevent people from giving away their assets prior to filing for bankruptcy.
It sounds like your best defense is going to be that you were given the property in exchange for paying for paying for your sister’s utilities, food, medicines, etc. I have to be honest, however, that I think you have a weak case since the mobile home is probably worth much more than those bills that you’ve paid. Still, that is probably your best argument. You’ll want to prove that you’ve paid such bills if possible (i.e. show receipts, etc.). I also think you’ll want to frame it as a conscious exchange of benefits. If you frame it as she gave you the property, and therefore, you’re helping her out, then that will not help your case since the transaction should be viewed as a true sale.
Have I satisfactorily addressed your concerns? If not, then please feel free to ask for clarification.
If the information that I provided was helpful, then please remember to click the green accept button so that I will receive credit and compensation for my time. Positive feedback is always appreciated as well. Thank you and good luck!