Property Transfer and Bankruptcy

Bankruptcy Attorney

There are a wide variety of questions that are posed by people who are contemplating possibly seeking protection under bankruptcy laws. One question that seems to be raised time and time again is with regard to property transfer prior to filing. The number one thing you should do before transferring anything to anyone is have a conversation with a qualified bankruptcy attorney to find out exactly what is allowed and what is not.

The primary issue to understand is that some property may be exempt under protection laws and some is not. What this means is that certain property can be liquidated to pay off creditors and the courts will look unfavorably on the transfer. If you are seeking to transfer the property in order to avoid creditors then you may have problems.

The court will take into account exactly when you transferred the item, if you received fair market value (meaning you cannot give a car to a spouse or child or sell it for $5 to hide the value) and also what you did with the funds you received. All of these things will be taken into account for the court to decide if it was a fair transfer or an attempt at deceit.

As mentioned above, the best and most prudent course of action would be to talk to an Ohio bankruptcy lawyer before the transfer to avoid any legal repercussions. Choosing not to discuss could land you in some hot water that would be best avoided.

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