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Category: Bankruptcy Law
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If I transfer assets from my current LLC to a new company that

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If I transfer assets from my current LLC to a new company that were purchased after my personal bankruptcy and my current LLC declares bankruptcy will those assets be seen as a fraudulent transfer to the new company?

Hi JACustomer,

If your current LLC is insolvent (total debts are greater than total assets), and if your current LLC transfers assets it owns to a new company and without adequate compensation, that transfer can be deemed a fraudulent transfer and the transfer reversed if a Bankruptcy for the current LLC is filed less than 2 years after the transfer. Bankruptcy Stat. 548(a)(1).

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