Sometimes in Chapter 7 bankruptcy your property can be taken and sold to satisfy your debts. When I explain to clients that they could potentially lose their property in bankruptcy, the most common response is, “I’ll just transfer my car out of my name to my relative,” Please do not transfer property to a relative, friend, or third party shortly before filing bankruptcy as this is known as a fraudulent conveyance or fraudulent transfer and carries with it serious repercussions.
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