The Cassidy Law Firm Blog

Thursday, October 30, 2014

Can I Transfer Property Before Filing Chapter 7 Bankruptcy?

Many People Considering Filing for Bankruptcy Ask the Question: Can I Transfer Property Before Filing Chapter 7 Bankruptcy?

Prior to filing for Chapter 7 Bankruptcy it may be tempting to transfer your property to friends or relatives in order to protect the property from creditors. Unfortunately, transferring your property may cause you harm as it could result in serious consequences that range from making you ineligible to file for Chapter 7 Bankruptcy for a period of time to losing your property and having your Bankruptcy case dismissed.

Some people think that they can simply transfer valuable property to others with an understanding that their property will be returned to them once their Chapter 7 Bankruptcy case has concluded. Transferring or selling property within two years of filing for Chapter 7 Bankruptcy, particularly when the property is sold for less than the property is worth, can be considered fraud. Property that you own before filing for Chapter 7 Bankruptcy is considered part of your bankruptcy estate and hiding assets, or fraudulently transferring assets, can lead to criminal charges.

Property that is transferred prior to filing for bankruptcy can be taken from the new owner and sold in order to satisfy debts owed to creditors. If you make the mistake of transferring your property before filing for Chapter 7 Bankruptcy it might be best not to attempt to get the property back. Transferring property, or having property transferred back to you, prior to filing for bankruptcy may cause the Bankruptcy Trustee to do an investigation for potential fraud. The good news is that you are only required to disclose any transfers made two years prior to filing for bankruptcy.

While it is best not to transfer property before filing for Chapter 7 Bankruptcy, sometimes transfers happen within the two year period because the individual was not yet contemplating bankruptcy. Often, property that people try to transfer can be exempt under state or federal bankruptcy exemptions.

If you are considering filing for Chapter 7 Bankruptcy and have transferred any property within the last two years it is advisable that you speak with an experienced bankruptcy attorney. To receive a free consultation, contact The Cassidy Law Firm to speak with an experienced Monmouth County bankruptcy attorney today. The Cassidy Law Firm is conveniently located in Shrewsbury, New Jersey. We provide legal services throughout all of Monmouth County, Ocean County, Middlesex County and all of New Jersey. Contact The Cassidy Law Firm today to receive your free initial consultation.

 

Please click the links below to find out more information about Bankruptcy Attorneys:

What to Expect When You File for Chapter 7 Bankruptcy

Immediately Stop all Collection Activity: The Automatic Stay (11 U.S.C. §362)

Can I Eliminate or Avoid Liens on My Property if I file for Chapter 7 Bankruptcy?

 

*We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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