Fraudulent Transfers Around the Holidays
Giving a gift, including selling for much less than an asset is worth, may be a fraudulent transfer--treated as hiding assets from creditors.
Timing: Avoiding “Fraudulent Transfers”
Giving a gift, or selling for less than true value, can cause problems when done before bankruptcy, but usually only if the amount is large.
Resolving a Fraudulent Transfer Painlessly through Chapter 13
If you owe "priority" debts like income taxes and/or support payments, you may be able to pay no more while protecting a transferee.
Preventing Avoidance of Fraudulent Transfers through Chapter 13
Overall, Chapter 13 can be more powerful and more flexible than Chapter 7. That often also applies to a fraudulent transfer.
Fraudulent Transfers without the Actual Intent to Defraud
Selling or giving away something innocently, without trying to hurt your creditors, could still give the trustee the right to get it back.
Fraudulent Transfers with Actual Intent to Defraud
Selling or giving away something to prevent your creditors from getting it may make a certain amount of sense but could be very dangerous.
Introducing Fraudulent Transfers
"Fraudulent transfers" have similarities to "preferences." They are both worth understanding because they can cause unnecessary hassles.
Recovered Assets from “Fraudulent Transfers”
Which assets that you sell or give away before filing bankruptcy will be a problem, and which won't?
Assets Recently Sold or Given Away
Your assets can include property and possessions that you have sold or given away before filing bankruptcy.
Bankruptcy Timing and the Holidays: Gift-Giving and “Fraudulent Transfers”
Gift-giving, or selling for much less than actual value, can cause problems ahead of bankruptcy, but only if it's a large gift.
Making Sense of Bankruptcy: Potential Concerns about Recent Sales, Transfers and Gifts
To discourage disposing of assets before bankruptcy, a trustee can potentially undo a prior transaction in order to benefit all creditors.
Crucial Question: Is it OK to Sell or Give Away Some of My Possessions Before Filing Bankruptcy?
Don't get caught up in a "fraudulent transfer." It's easier than you might think to do so, because it doesn't take fraudulent intent.