Should I Dispose of or Liquidate my Possessions Before I File?

by Paul R. Tom Basic Bankruptcy Information

If you give, sell or transfer an asset to someone within one year before filing for bankruptcy the trustee can reverse that transfer and deem it fraudulent if it was made for less than fair market value of the asset. For example, if you give away a piece of valuable non-exempt property to a family member within one year before filing bankruptcy, the Chapter 7 trustee will probably reverse that transaction and bring the property back into your bankruptcy estate.

If you have already engaged in such transactions as gifting, selling, filing a quit claim deed to real estate, or transferring a vehicle or other piece of property, it is crucial that you speak to one of our attorneys before you try to reverse any transaction. Generally you should not transfer anything or pay any debts other than normal monthly bills before consulting us.