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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41221
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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If all assets were transferred to a trust prior to declaring

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If all assets were transferred to a trust prior to declaring chapter 7, would they be better protected? Would it be perceived as a fraudelant transfer? Could it be undone?

Thank you for your question, and thank you most kindly for requesting me to assist you directly.

There is a bit of a time-line involved pertaining to transfers into a trust. If the courts see the transfer as solely attempting to avoid bankruptcy, the courts can potentially seek to reverse the transfer, especially if done within 6 months of filing for bankruptcy. So while a trust does protect assets, especially if the trust is 'irrevocable' in nature, the courts have the ability to bust it open if they see the cause of the transfer was a means to defraud or avoid collections.

Good luck.

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