Fraudulent Conveyances Discussed by a Local Bankruptcy Lawyer in Phoenix, Arizona

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Fraudulent Conveyances: Discussed by a Local Bankruptcy Lawyer in Phoenix, Arizona.

chapter 7, chapter 13, bankruptcy, lawyer, attorney, casa grande, phoenix, arizona.

Question: Can I transfer ownership of my car before filing for bankruptcy?

I want to file for bankruptcy but I do not want to lose my car. Can I sell it to a relative and transfer the ownership before I file so that I can keep it? I want to sell it for a little bit of money then I will buy it back after bankruptcy is over. Is that legal?

Answer: No.... not unless you are a fan of black and white stripes, that is.

You are not the first person to file for bankruptcy. More importantly, you are not the first person to file for bankruptcy while owning a valuable asset - one that you would like to keep. Unfortunately, the bankruptcy code does not allow fraudulent conveyances, or the transfer of property that is made to swindle, hinder, or delay a creditor, or to put such property beyond his or her reach.

Remember that the bankruptcy code was written as a compromise between both the debtor and the creditors involved. As an Arizona debtor, you are specific exemptions that have been deemed necessary to facilitate a financial fresh start. However, your creditors are also protected. It would not be fair to your creditors if you kept non-exempt property while eliminating your debt to them.

Whether you want to believe it or not, the bankruptcy trustee assigned to your case has probably been around the block a few times. Remember, it is their job to sufficiently explore your financial situation to ensure that your creditors are properly protected according to the bankruptcy code - they can smell these assets a mile away. If your bankruptcy trustee discovers a preference transfer of your automobile to a friend or family member, they will claim the automobile and you may face criminal punishment.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Christopher Ariano, Ariano and Reppucci PLLC | Attorney Advertising

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