Improperly Transferring Assets Prior to Filing Bankruptcy
You must disclose any asset that you have sold, given away, or otherwise transferred prior to the filing of the bankruptcy. Transfers to family members and business partners receive the closest scrutiny.
Selling assets to friends or family members before you file bankruptcy is generally allowed so long as you receive fair value in exchange. But simply “putting an asset in someone else’s name” while you go through bankruptcy is considered a fraud, and trustees have ways of discovering such things. An experienced bankruptcy attorney will counsel you against fraudulent transfers and will have experience to predict how the various trustees are likely to respond to the situation.
