When a person files for bankruptcy, it is common for them to consider transferring any assets to a family member or friend to protect them. However, it is important to understand the implications of such a transfer. Even if it may seem like a smart move, it can actually harm the case. Before transferring any property, make sure to check with a bankruptcy lawyer and get sound legal advice. Look at this – https://www.scura.com/blog/the-truth-about-transferring-property-on-the-eve-of-bankruptcy
Protect Your Assets From Potential Legal Complications And Ensure The Success Of Your Bankruptcy Filing
Before transferring property, be sure to keep all records. Especially if you are planning to file for bankruptcy, bring copies of all your records. Moreover, make sure to explain to your creditors how you plan to use the proceeds of the sale. In addition, make sure to include any property sale in your bankruptcy plan so your creditors will be aware of what you have been doing. By following these guidelines, you can protect your assets from potential legal complications and ensure the success of your bankruptcy filing.
While bankruptcy debtors are allowed to transfer property before the bankruptcy filing, they should avoid making any fraudulent transfers. In addition, bankruptcy trustees can undo any fraudulent transfers if the debtor is unable to pay back the debts. Using a bankruptcy trustee as a third party will help you avoid fraudulent transfers. The trustee will make sure the transaction is fair for all parties. You should also ask your bankruptcy lawyer to explain all of your options to make sure you do not end up in the same situation as another person.