Should I Sell or Transfer My Properties Before I File Bankruptcy?

Should I sell or transfer my properties before I file bankruptcy?

Generally, you should not dispose of assets in contemplation of bankruptcy. Such transfer of assets can result in avoidable transfer by the bankruptcy trustee. Even worst, such transfer might be classified a “fraudulent transfer” where the bankruptcy trustee can sue the recipient to recover the assets. Fradulent transfers are defined in two ways: any transfer made with the intention of hindering, delaying and defrauding creditors, and any transfer made while the debtor was insolvent or which rendered the debtor insolvent or which rendered the debtor insolvent which resulted in materially smaller consideration being received by the debtor than that transferred. Demonstrating intent to hinder, delay and defraud is often difficult but no such intent is required to be demonstrated by the trustee to avoid transfers in which the debtor simply ended up with the shorter end of the stick. Moreover, accusation of fradulent transfer by the bankruptcy trustee will create difficulties for debtor to receive a discharge, if not the dismissal of bankruptcy case without discharge of debt. If debtor committed perjury by failing to disclose transfer, severe penalties like fines or/and prison can follow in addition to the dismissal of bankruptcy case without discharge.

Call Muoi Chea Bankruptcy Attorney before you transfer any assets. Bankruptcy Attorney Offices in Sacramento, Stockton, and Fairfield, California to serve all of the following cities:
Alpine, Amador, Butte, Calaveras, Colusa, El Dorado, Glenn, Lassen, Modoc, Mono, Nevada, Placer, Plumas, Sacramento, San Joaquin, Shasta, Sierra, Siskiyou, Solano, Stanislaus, Sutter, Tehama, Trinity, Tuolumne, Yolo, Yuba City, Lodi, Galt, Manteca, Modesto, Tracy, Davis, Woodland, Elk Grove, Carmichael, Citrus Heights, Orangevale, Antelope, Fair Oaks, West Sacramento, Roseville, Rocklin, Rancho Cordova, Lincoln, North Highlands, Folsom, El Dorado, Ripon, Fairfield, Vacaville, Dixon, Vallejo, Woodland, Davis, Winters, Oakdale, Newman, Patterson.